Metaplanet, the Tokyo-listed company known for aggressively accumulating Bitcoin , is under mounting pressure as its stock price continues to fall, raising concerns over the sustainability of its unique fundraising model. Despite Bitcoin climbing around 2% since mid-June, the company’s shares have dropped 54%, creating significant headwinds for its capital-raising “flywheel” strategy. The mechanism, which relied on rising stock prices to unlock funding through MS warrants issued to its key investor Evo Fund, is now under strain. With shares trading sharply lower, exercising these warrants has become unattractive for Evo, putting liquidity pressure on the firm and slowing down its Bitcoin acquisitions, Bloomberg reported on Sunday. Ambitious Bitcoin Goals Under Threat Metaplanet, led by former Goldman Sachs trader Simon Gerovich, has built one of the world’s largest corporate Bitcoin treasuries, holding 18,991 BTC according to BitcoinTreasuries.NET. The company has set ambitious targets to grow its reserves to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027. However, with its fundraising “flywheel” losing momentum, Gerovich has turned to alternative methods to keep the strategy alive. On Wednesday, Metaplanet revealed plans to raise about $880 million through a public share offering in overseas markets. In addition, shareholders are set to vote on Monday on a proposal to issue up to 555 million preferred shares, a relatively rare instrument in Japan, which could raise as much as 555 billion yen ($3.7 billion). In a Bloomberg interview, Gerovich described the preferred shares as a “defensive mechanism,” offering a way to infuse capital without diluting common shareholders if the stock falls further. These preferred shares are expected to pay up to 6% annual dividends and will initially be capped at 25% of Metaplanet’s Bitcoin holdings, potentially attracting Japanese investors seeking yield in a low-interest environment. Market Confidence and Premium Decline Analysts remain cautious about the strategy’s success, pointing out that the “Bitcoin premium” — the gap between Metaplanet’s market cap and the value of its Bitcoin reserves — has fallen significantly. Natixis analyst Eric Benoit noted that the premium, which stood at over 8x in June, has now dropped to just 2x, increasing the risk of dilution for shareholders. The company suspended Evo Fund’s warrant exercises between September 3 and 30, clearing the way for the new preferred stock issuance. Meanwhile, Metaplanet earned a boost after being upgraded from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review, gaining entry into the FTSE Japan Index. Whether these moves will stabilize its Bitcoin accumulation strategy remains uncertain. The post Metaplanet Faces Pressure as Stock Slump Threatens Bitcoin Accumulation Strategy appeared first on TheCoinrise.com .
