The company has 18,991 BTC and aims to reach 100,000 BTC in 2026. To raise capital, it is turning to foreign share offerings as well as preferred stock issues. Analysts say the fall of “Bitcoin Premium” from 8x down to 2x increases dilution risk, but Metaplanet’s recent upgrade of FTSE Japan’s mid-cap Index is a bit of a positive.
Metaplanet is a Tokyo listed company known for aggressive Bitcoin acquisition. However, its stock price has continued to fall, putting it under financial pressure. Stocks of the company have fallen by over 50% in just a few months, while Bitcoin has gained around 2%.
Metaplanet stock prices over the last month (Google Finance )
This sharp drop undermined Metaplanet’s “flywheel strategy” for capital raising, which depends on increasing stock prices in order to release funding via MS warrants that were issued to Evo Fund as its main investor. The current drop in share prices made it unattractive to Evo Fund for them to exercise these warrants, reducing Metaplanet’s liquidity.
Metaplanet, led by Simon Gerovich (a former Goldman Sachs trader), has amassed 18.991 BTC. This makes it the seventh-largest public Bitcoin holder according to BitcoinTreasuries.NET. It also has ambitious goals of holding 100,000 BTC in 2026, and 210,000 BTC in 2027. Gerovich’s existing funding strategy has failed, so the company is looking to alternative sources of funds.
Top public Bitcoin treasury companies ( BitcoinTreasuries.NET)
Metaplanet revealed plans last week to raise approximately 130.3 billion Japanese yen (880 million dollars) via a public offering of shares on overseas markets. Shareholders will also vote to approve up to 555 millions preferred shares that could generate as much as $3.7 billion. Gerovich said the preferred shares were a defensive measure, providing capital to the company without dilution of common shareholders in the event that the price fell even further. The preferred shares are expected to pay up to 6% in annual dividends. They will initially be capped at 25 percent of Metaplanet’s Bitcoin holdings. This may appeal to Japanese investors who want to maximize their returns.
Analysts warn, despite these efforts that Metaplanet’s success depends on its “Bitcoin Premium” – the difference between the market capitalization of the company and its Bitcoin holdings. This premium fell from 8x to 2x between June and July, creating concerns over future dilution.
For most of the month of September, Evo had already stopped exercising its warrants. It remains to be determined if this pivotal change will restore momentum in its funding model. Metaplanet was upgraded from small to midcap status by FTSE Russell in its September Semi-Annual Review. This upgrade secured inclusion in FTSE Japan Index following Metaplanet’s strong performance in the second quarter.
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