For more than a year, Metaplanet has built its identity around an audacious mission: amass one of the world’s largest corporate Bitcoin treasuries.
But the strategy is now colliding with harsh market realities.
Since mid-June, shares of the company have plunged 54%, even as Bitcoin itself edged modestly higher. That collapse has left Metaplanet’s fundraising engine sputtering. The firm’s model relied heavily on a rising stock price to trigger warrant conversions from investor Evo Fund, which supplied fresh capital for Bitcoin buys. With the shares down, that cycle has effectively stalled.
Metaplanet still sits on nearly 19,000 BTC — about $2 billion — ranking it seventh among public Bitcoin holders. CEO Simon Gerovich insists the target of 100,000 BTC by 2026 and 210,000 BTC by 2027 remains intact. But the playbook is shifting.
Earlier this week, the firm announced a planned $880 million overseas share sale, alongside a shareholder vote to approve $3.7 billion in preferred shares — a rare financing tool in Japan that offers dividends up to 6%. Gerovich has described the preferred stock as a defensive measure, designed to raise cash without further diluting common shareholders.
The timing is critical. Metaplanet’s so-called “Bitcoin premium” — the market value investors were willing to pay above the worth of its BTC reserves — has shrunk from more than 8x in June to just 2x today. Analysts warn that without a rebound in that premium, the firm’s capital-raising edge may disappear.
Whether the new fundraising push will stabilize the model remains unclear. Evo’s warrants have already been paused for the month of September to make way for the preferred issuance. For now, the company’s future hinges on two variables: investor appetite for its unconventional financing, and Bitcoin’s ability to climb higher.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/metaplanets-bitcoin-dream-falters-as-stock-plunge-threatens-treasury-strategy/