Metaplanet Approves $884 Million Funding Round, Targets $3.8 Billion Preference Amidst Bitcoin ‘Flywheel’ Slowdown

Metaplanet Inc. has obtained shareholder consent to generate up to $884 million via an international share offering, despite increasing concerns regarding the viability of its bold Bitcoin acquisition strategy.

This initiative represents the latest transformation for the Tokyo-based firm, which transitioned from a struggling hotel operator to one of the largest corporate Bitcoin holders globally.

On Monday, Metaplanet shareholders endorsed a proposal to issue 550 million new shares, aiming to raise approximately 130.3 billion yen ($884 million) as the company seeks additional funds to enhance its Bitcoin assets.

Metaplanet shareholders have approved all 3 resolutions at today’s EGM:
Increase in Total Number of Authorized Shares
Virtual Shareholder Meetings
New Provisions for Perpetual Preferred Shares pic.twitter.com/O7UY2lW5P0

— Simon Gerovich (@gerovich) September 1, 2025

During the meeting in Tokyo, the company confirmed that a significant portion of the proceeds will be allocated for cryptocurrency acquisitions. The proposal was introduced the previous Wednesday.

The gathering attracted an unusually lively audience, featuring food trucks, a K-pop performance, and a notable appearance by Eric Trump. Trump, who joined Metaplanet’s advisory board in March, shared the stage with founder and CEO Simon Gerovich.

He commended Gerovich as “one of the most honest individuals I’ve ever encountered” and reiterated his belief in Bitcoin as “the ultimate global asset.”

Eric Trump’s Monday meeting in Tokyo will involve a vote by Metaplanet shareholders on a capital-raising proposal.https://t.co/nofFwD4hlp

— Cryptonews.com (@cryptonews) September 1, 2025

Trump also revealed that the Trump Organization possesses Bitcoin and asserted that sovereign wealth funds and global leaders are increasingly looking to acquire the cryptocurrency. He recently addressed the Bitcoin Asia conference in Hong Kong.

Metaplanet announced the addition of 1,009 Bitcoin on Monday, raising its total to 20,000 coins valued at over $2 billion. As per BitcoinTreasuries.net, this acquisition positions the Tokyo-based company as the sixth-largest corporate Bitcoin holder.

@Metaplanet_JP just stacked 1,009 more Bitcoin, boosting its treasure chest to 20,000 BTC, now valued at about $2.14B.#Metaplanet #HODL https://t.co/oD1HCMenYY

— Cryptonews.com (@cryptonews) September 1, 2025

Bitcoin Premium Compression Threatens Metaplanet’s Accumulation Strategy

The expansion occurs as Metaplanet encounters challenges regarding its financing strategy. Gerovich, a former derivatives trader at Goldman Sachs, has depended on “moving strike warrants” issued to Evo Fund to generate funds for Bitcoin acquisitions.

This method, which Gerovich referred to as the “flywheel,” enabled the company to raise capital at a low cost while its stock was appreciating.

However, the model has struggled as shares have declined. After surging over 740% in the past year, Metaplanet’s stock has decreased by 54% since reaching its peak in mid-June, even as Bitcoin has increased by 2% during the same timeframe.

This slowdown has limited accumulation, with Bitcoin holdings expanding by 160% in the two months leading up to June but less than 50% since then.

“The flywheel has slowed,” remarked Mark Chadwick, a former Jefferies analyst quoted by Bloomberg. “As the stock declines, each exercise generates less capital to buy Bitcoin.”

Analysts have also pointed out the compression of Metaplanet’s so-called “Bitcoin premium”—the disparity between the company’s market capitalization and the value of its holdings.

Once exceeding eight times its Bitcoin reserves in June, this multiple has contracted to approximately two.

“The Bitcoin premium is what drives the success of the entire strategy,” stated Natixis analyst Eric Benoist. “If the premium compresses, they can’t accumulate on the same terms, interest wanes, and the stock declines.”

To alleviate the pressure, in addition to the $884 million overseas share sale, Metaplanet had previously proposed issuing up to 555 million preferred shares, potentially raising as much as ¥555 billion ($3.8 billion).

Metaplanet raised over $517M on day one of its “555 Million Plan,” signaling strong early backing for its bold Bitcoin accumulation strategy.#Metaplanet #BTC https://t.co/NJ87Y5eP22

— Cryptonews.com (@cryptonews) June 25, 2025

The securities would offer dividends of up to 6% and be limited to 25% of the value of the company’s Bitcoin holdings. While preferred shares generally lack voting rights, they provide dividend priority over common stock, an appealing aspect for Japanese investors in a low-interest environment.

Gerovich has described the preferred issuance as a “defensive mechanism,” intended to safeguard common shareholders from dilution if the stock approaches the value of its Bitcoin reserves.

The company has also paused the exercise of Evo Fund’s warrants until September to prepare for this initiative.

“We don’t want to fall behind—people are racing to buy Bitcoin,” Gerovich stated. “I want another tool in my toolkit.”

Bitcoin was trading at $108,046 on Monday, down from last month’s peak of $124,481, although Eric Trump asserted that prices would eventually rise to $1 million.

Corporate Bitcoin Holdings Pass $111B as Metaplanet Leads in Asia

Metaplanet Inc. has solidified its status as Asia’s largest corporate Bitcoin holder, reporting a 468% yield in the second quarter of 2025 as its treasury reached 18,113 BTC valued at $2.1 billion.

The Tokyo-listed company officially adopted Bitcoin treasury operations in December 2024 and has since completely shifted from hotel management to digital assets under Gerovich’s leadership.

The firm’s rapid accumulation strategy has drawn parallels to Strategy, which pioneered the corporate Bitcoin reserve model in the U.S.

Metaplanet’s “555 Million Plan” aims for 210,000 BTC, roughly 1% of the total supply, by 2027. In the short term, it seeks to more than quadruple its holdings to 100,000 BTC by the end of next year.

Japan’s @Metaplanet_JP Q2 financial report shows a 468% Bitcoin yield, becoming the 4th largest global holder with 18,113 BTC worth $2.1B, targeting 210,000 BTC by 2027.#Japan #Bitcoinhttps://t.co/n5xJXwpgW7

— Cryptonews.com (@cryptonews) August 13, 2025

The company reported ¥816 million in operating profit on ¥1,239 million in Q2 revenue, primarily driven by ¥1,131 million in income from Bitcoin option underwriting.

The number of shareholders has surged over 1,000% in a year to 128,000, making Metaplanet the top performer among 55,000 publicly listed companies in 2024.

Globally, over 170 firms now hold Bitcoin on their balance sheets, totaling more than $111 billion. However, analysts caution that this strategy carries risks of dilution when stock values align with Bitcoin’s net asset value.

VanEck exec @matthew_sigel warns Bitcoin treasury strategies could backfire, as firms nearing NAV risk eroding shareholder value through continued BTC accumulation.#VanEck #BitcoinTreasuryhttps://t.co/jEINL4NuxY

— Cryptonews.com (@cryptonews) June 16, 2025

Matthew Sigel from VanEck cautioned that once company valuations align with Bitcoin holdings, shareholder dilution may outweigh potential benefits.

The post Metaplanet OKs $884M Raise, Eyes $3.8B Preferred While its Bitcoin ‘Flywheel’ Stalls appeared first on Cryptonews.