Metaplanet, the Tokyo-listed Bitcoin treasury firm, is under growing financial strain as its fundraising “flywheel” loses steam. The company’s shares have plunged 54% since mid-June, even as Bitcoin gained around 2% in the same period, a divergence that has undermined its core funding mechanism.
For months, Metaplanet relied on MS warrants issued to Evo Fund, its primary backer, to fuel Bitcoin purchases. Rising share prices made exercising these warrants lucrative, creating a cycle of fresh capital and additional Bitcoin accumulation. But with the stock now sliding, Evo has little incentive to exercise, leaving Metaplanet scrambling for liquidity.
Led by former Goldman Sachs trader Simon Gerovich, the firm holds 18,991 BTC, ranking seventh among public companies, according to BitcoinTreasuries.NET. Metaplanet has set ambitious targets: 100,000 BTC by 2026 and 210,000 BTC by 2027. Yet the sharp decline in its share price has forced Gerovich to explore alternatives.
On Wednesday, Metaplanet announced plans to raise ¥130.3 billion ($880 million) through an overseas share offering. Shareholders will also vote Monday on whether to authorize up to 555 million preferred shares, a rare structure in Japan that could raise as much as ¥555 billion ($3.7 billion). Gerovich described the move as a “defensive mechanism,” noting that preferred shares would allow capital inflows without directly diluting common shareholders, even if the stock slides further. These instruments could pay up to 6% annual dividends and be capped at 25% of Metaplanet’s Bitcoin holdings, potentially appealing to yield-hungry Japanese investors.
Still, analysts warn the strategy hinges on the “Bitcoin premium” — the gap between Metaplanet’s market capitalization and the value of its BTC. That premium has shrunk from over 8x in June to just 2x, heightening dilution risks. “The Bitcoin premium is what will determine the success of the entire strategy,” Natixis strategist Eric Benoit told Bloomberg.
Metaplanet has suspended Evo’s warrant exercises from Sept. 3 to 30, clearing the path for the preferred share issue. Whether this pivot restores confidence remains uncertain.
Amid the turbulence, there is one bright spot: Metaplanet has been upgraded from small-cap to mid-cap status in FTSE Russell’s September 2025 Semi-Annual Review, securing inclusion in the FTSE Japan Index following strong Q2 earnings.
