Metaplanet Aims to Raise $3.8 Billion via Preferred Share Issuance to Fuel Bitcoin Buying Spree (2025)

• Why Is Metaplanet Raising $3.8 Billion in Capital?
• What Happened to Metaplanet's Original Funding Model?
• How Has Metaplanet's Bitcoin Strategy Performed Recently?
• Who Is Supporting Metaplanet's New Direction?
• What Are Metaplanet's Future Bitcoin Targets?
• Frequently Asked Questions

In a bold move to double down on its bitcoin strategy, Japanese firm Metaplanet has announced plans to raise up to ¥555 billion ($3.8 billion) through the issuance of 555 million preferred shares. This comes as the company's stock has plummeted 54% since mid-June, erasing gains fueled by its aggressive Bitcoin accumulation strategy. The proposal will be voted on during an extraordinary shareholders meeting in Tokyo, with notable attendees including Eric Trump who recently joined as an advisor.

Why Is Metaplanet Raising $3.8 Billion in Capital?

Metaplanet's ambitious fundraising plan represents one of the largest Bitcoin-focused capital raises by a Japanese public company. The firm, which pivoted from hotel management to crypto accumulation under former Goldman Sachs trader Simon Gerovich, currently holds 18,991 BTC (worth approximately $2.1 billion) - ranking seventh among public companies globally according to BitcoinTreasuries.net. The preferred shares will carry a maximum 6% dividend, capped at 25% of the company's Bitcoin reserves value.

What Happened to Metaplanet's Original Funding Model?

The company's initial financing mechanism - dubbed the "flywheel" - has stalled dramatically. This structure relied on warrants with floating strike prices through partnership with Evo Fund. When Metaplanet's stock was rising, Evo could profit from the spread and share gains with Metaplanet for additional Bitcoin purchases. However, as Mark Chadwick, former Jefferies analyst now with SmartKarma noted, "The flywheel cycle has slowed" with the stock decline. Evo's warrant exercises have dwindled to nearly zero, cutting off this capital source.

How Has Metaplanet's Bitcoin Strategy Performed Recently?

Growth in Metaplanet's Bitcoin holdings has slowed significantly - increasing less than 50% since June 30 compared to 160% growth in the prior two months. The company's "Bitcoin premium" (market cap relative to BTC holdings) has collapsed from 8x to just 2x. Gerovich views the preferred share offering as a "defensive mechanism" to continue accumulating Bitcoin without diluting common shareholders if the stock price approaches the value of their Bitcoin holdings.

Who Is Supporting Metaplanet's New Direction?

The shareholder vote has attracted unusual attention with Eric TRUMP flying to Tokyo for the meeting after becoming a company advisor. Trump has already received 3.3 million shares through stock options. The company has suspended all Evo-related transactions from September 3-30 to clear the path for the preferred share issuance. This financing approach mirrors strategies used by Michael Saylor's MicroStrategy in the U.S.

What Are Metaplanet's Future Bitcoin Targets?

The company aims to hold 100,000 BTC by end of 2026 and double that to 200,000 by 2027 - which would require massive additional purchases beyond current levels. However, as analyst Benoist pointed out, "There isn't infinite capital available. So I think everyone has to ask: when does this end?" With 170+ public companies now holding Bitcoin (combined $111+ billion value according to BitcoinTreasuries.net), Metaplanet's aggressive moves highlight the growing institutionalization of crypto assets.

Frequently Asked Questions

How much Bitcoin does Metaplanet currently own?

Metaplanet currently holds 18,991 Bitcoin, valued at approximately $2.1 billion, ranking seventh among public company holdings according to BitcoinTreasuries.net.

What is the purpose of Metaplanet's preferred share issuance?

The $3.8 billion preferred share offering aims to continue Bitcoin purchases without further diluting common shareholders, especially if the stock price approaches the value of their Bitcoin holdings.

Why has Metaplanet's original funding model stopped working?

The "flywheel" financing structure with Evo Fund relied on rising stock prices to generate capital for Bitcoin purchases. With Metaplanet's stock down 54% since June, this mechanism has effectively stalled.