Metaplanet, a Tokyo-based firm known for its aggressive Bitcoin accumulation strategy, is facing a significant hurdle as its stock price has plummeted, creating a fundraising crunch. The company's share price has sunk 54% since mid-June, despite Bitcoin gaining around 2% in the same period. This downturn threatens the firm's capital-raising "flywheel," which is heavily reliant on rising share prices to secure funding through MS warrants issued to its key investor, Evo Fund.
Metaplanet, led by former Goldman Sachs trader Simon Gerovich, holds 18,991 BTC, making it the seventh-largest public holder of Bitcoin globally. The company has ambitious goals to increase its holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027. However, the recent slump in its stock price has jeopardized these aspirations.
The "flywheel" strategy, which previously enabled Metaplanet to raise capital effectively, is now under strain. With the share price significantly lower, exercising warrants has become less appealing for Evo Fund, resulting in a liquidity squeeze for Metaplanet and a slowdown in its Bitcoin acquisition efforts.
Faced with these challenges, Metaplanet is exploring alternative fundraising avenues. The company announced plans on Wednesday to raise approximately 130.3 billion yen ($880 million) through a public share offering in overseas markets. Additionally, shareholders will vote on Monday to approve the issuance of up to 555 million preferred shares, a relatively uncommon financial instrument in Japan, which could potentially raise up to 555 billion yen ($3.7 billion).
According to Gerovich, the preferred shares are viewed as a "defensive mechanism," allowing the company to infuse capital without diluting common shareholders if the stock price continues to decline. These shares are expected to offer annual dividends of up to 6% and are initially capped at 25% of the firm's Bitcoin holdings, potentially making them attractive to Japanese investors.
Metaplanet's stock is listed and trades on the Tokyo Stock Exchange under the ticker symbol 3350. As of August 27, 2025, the stock was trading at 899.00, with a previous close of 890.00. The stock's 52-week range has fluctuated between 82.10 and 1,930.00. As of August 30, 2025, the stock price was 879.00.
The company's strategy of accumulating Bitcoin has attracted attention, but the recent stock decline highlights the risks associated with tying a company's value so closely to the volatile cryptocurrency market. Metaplanet's ability to adapt its fundraising strategy and navigate these challenges will be crucial to its long-term success in achieving its ambitious Bitcoin accumulation goals.
