Metaplanet Faces Crunch: Is Bitcoin Treasury Plan In Jeopardy?

Key Insights:

• Metaplanet shares dropped 54% from June highs, straining its funding model.
• The firm proposed issuing up to 555 million preferred shares to seed its BTC bet.
• Bitcoin holdings stood at 18,991 BTC, with plans to reach 100,000 by 2026.

Bitcoin treasury firm Metaplanet Inc. has seen its stock fall by over 50%. This has pressured its funding model and raised questions about its goal to expand its Bitcoin holdings.

It has also made the company seek new financing through overseas share sales and a preferred stock proposal in Japan.

Metaplanet Seeks Cash After Stock Decline

Metaplanet Inc., a Japanese company led by President Simon Gerovich, faced a funding challenge after its share price dropped sharply. The firm secured funding through a deal with Evo Fund, a U.S.-based Evolution Financial Group branch.

This financing was crucial for raising capital to purchase Bitcoin. This deal worked when the stock rose, but became less effective after the price fell. The company’s shares gained over 400% earlier in 2025, turning Metaplanet into one of Japan’s most-watched Bitcoin-linked firms.

However, the stock lost more than half its value from mid-June to late August. On August 29, the price was down 54% from its June 16 peak. With the slump, Metaplanet announced plans to raise $884 million by selling shares overseas.

It is also prepared to issue preferred stock, a step rarely taken by Japanese firms. Shareholders are expected to vote on September 1 at an extraordinary general meeting in Tokyo.

If approved, the company could issue up to 555 million preferred shares. Company documents showed this could bring in as much as $3.8 billion. Gerovich explained that preferred shares offer a way to raise funds while protecting the interests of ordinary shareholders.

This strategy acts as a financial buffer, easing potential dilution concerns. The planned preferred shares would offer up to 6% dividends and be capped at 25% of the company’s Bitcoin value.

Metaplanet had already raised over $1.6 billion earlier in the year through its deal with Evo Fund. Gerovich referred to the agreement as “the flywheel.”

It involved selling stock acquisition rights priced in sync with the company’s share value. The structure was attractive when the stock rose, but less so once the price fell.

Metaplanet Stock Crash Slows Bitcoin Buying

Metaplanet’s strategy of growing its Bitcoin treasury depended on strong share prices. The stock drop has limited the company’s ability to use the Evo deal effectively. As of writing, the stock was down 2.22% to 879 yen.

Analysts noted that as the share price fell, each exercise by Evo Fund generated less money for Bitcoin purchases. The company’s Bitcoin holdings proliferated early in the year. They rose more than 160% as of June 30.

Since then, the pace slowed, with holdings expanding less than 50% in the following weeks. Another measure watched by investors was the Bitcoin premium, the gap between the firm’s market value and its BTC value.

In June, Metaplanet traded at more than eight times its Bitcoin holdings. By late August, the premium had dropped to about half its earlier values. Analysts said the smaller premium reduced the company’s ability to issue equity on favorable terms.

Metaplanet’s market capitalization stood at 628.3 billion yen at the end of August. Its Bitcoin holdings were 18,991 units, worth about $2.1 billion. The company aimed to raise its stash to 100,000 Bitcoin by the end of 2026 and to double again in 2027.

Strategy’s Model and the Metaplanet Gap

Metaplanet’s actions were often compared with those of Strategy Inc., the United States company led by Michael Saylor. Strategy currently holds about 630,000 Bitcoin, the largest corporate holding worldwide.

By contrast, Metaplanet ranked seventh among global firms, according to BitcoinTreasuries.net. Strategy had used preferred stock to expand its Bitcoin position, a method Metaplanet was only now adopting.

Still, analysts suggested that this difference explained why the Metaplanet playbook did not deliver the same results. Similarly, as Metaplanet sought approval for preferred shares, it prepared to expand its overseas investor base.

The proposal came when interest in Bitcoin treasuries remained strong. With this, more than 170 companies worldwide hold the asset.

Metaplanet’s future growth would depend on whether shareholders approve the preferred share plan and how investors respond to the offer. The outcome could determine if the company reached its target of expanding its Bitcoin holdings over the next two years.