Metaplanet is under increasing pressure from its shareholders as the share price falls. This threatens the model of fundraising that it used to create one of the world’s largest Bitcoin corporate treasuries.
Bitcoin is not the only thing that has affected Bitcoin’s share price.BTCThe same period saw a gain of around 2%. This decline has put the capital-raising ability of its company at risk “flywheel” A mechanism that relies on rising stock prices is used to release funding via MS warrants, which are granted to Evo Fund. This fund’s key investor.
Evo’s shares are down dramatically, making it less attractive to exercise these warrants. This will reduce Metaplanet’s liquidity, and slow its Bitcoin acquisition strategy. according Bloomberg published a report on Sunday.
Led by former Goldman Sachs trader Simon Gerovich, Metaplanet currently holds 18,991 BTC, making it the seventh-largest public holder, according to BitcoinTreasuries.NET. Metaplanet aims to increase its holdings of BTC to 100,000 by the end 2026 and to 210,000 by 2027.
Related: Metaplanet, Smarter Web add almost $100M in Bitcoin to treasuries
Metaplanet expands overseas market
Its “flywheel” Gerovich has turned to alternative funding when his strategy is losing traction. On Wednesday, Metaplanet announced plans to raise A public stock offering on foreign markets will raise approximately 130,3 billion yen (880 millions)
On Monday, the shareholders of the company will also vote to accept or reject an issuance up to 555,000,000 preferred shares. This is a very rare Japanese instrument that could generate as much as $3.75 billion.
Gerovich described the preferred shares as a “defensive mechanism,” Allowing capital to be infusioned without reducing the number of common shareholders, if stock prices fall further. Japanese investors, who are in need of some yield, might be interested by these shares. These will offer dividends of up to 6 percent per year and at first, they’ll only apply to 25% of Bitcoin holdings.
Related: Metaplanet plans to raise additional $3.7B to buy Bitcoin
Metaplanet’s strategy is at risk due to the falling Bitcoin premium
Analysts remain cautious. “The Bitcoin premium is what will determine the success of the entire strategy,” Eric Benoit from Natixis said. The premium, or the difference in the market cap of Metaplanet and the Bitcoin value, is down from more than 8x a month ago to only 2x.
From Sept. 3 through 30, the company suspended Evo warrant exercise, paving the path for preferred stock issuing. This shift will determine if Metaplanet can maintain its funding strategy.
Metaplanet, meanwhile, has gone from being a small cap to an mid-cap stock in FTSE Russell’s Inclusion in the FTSE Japan Index for September 2025 Semi-Annual Review. This move comes after the strong performance of Q2.
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Source: cointelegraph.com
