- Metaplanet struggles with Bitcoin strategy, pressures stock.
- Seeks $884 million overseas funding.
- Shareholder vote on $3.8 billion shares imminent.
Metaplanet Inc.’s stock has fallen 54% since mid-June 2025 due to stress on its Bitcoin-fueled strategy, forcing exploration of alternate funding. The firm plans a shareholder vote for issuing up to 555 million preferred shares.
Metaplanet’s funding crisis highlights risks of undiversified crypto strategies, impacting its sustainability and market reliance.
The sharp decline in Metaplanet’s stock has notably impacted its Bitcoin-funded treasury growth strategy, termed the “flywheel.” This has led the company to seek $884 million through overseas share sales. Simon Gerovich, President of Metaplanet, remarked in a Cointelegraph article:
“plans to raise $884 million through overseas share sales. The company’s stock has fallen 54% since mid-June, impacting its Bitcoin acquisition strategy.”
The stock’s decline threatened Bitcoin accumulation plans, forcing strategic changes involving President Simon Gerovich. Gerovich, a former Goldman Sachs trader, plans to issue up to $3.8 billion in preferred shares, pending shareholder approval. The Evo Fund’s warrant rights were suspended, reflecting the unattractiveness of Metaplanet’s current stock value.
Crypto markets showed volatility, influencing businesses with heavy cryptocurrency exposure. Stakeholders expressed concern over such high-leverage models, which resemble MicroStrategy’s historically successful but risky strategies. No immediate effects were seen on ETH or DeFi sectors. However, sentiments in the Japanese and global markets suggest heightened caution regarding similar treasury strategies. Governance and regulatory scrutiny may increase following Metaplanet’s difficulties, drawing parallels with past management decisions.
