Metaplanet secures $884M share sale amid intensifying Bitcoin strategy scrutiny

Metaplanet Inc., the Tokyo-based firm that has reinvented itself from a struggling hotel operator into one of the world’s largest corporate holders of Bitcoin, has secured shareholder approval to raise up to $884 million through an overseas share sale.

The move underscores both the company’s aggressive expansion strategy and the growing questions over the sustainability of its approach.

Shareholders back capital raise and governance changes

At an extraordinary general meeting in Tokyo, Metaplanet shareholders approved three key resolutions: an increase in the number of authorized shares, the introduction of virtual shareholder meetings, and new provisions for perpetual preferred shares.

The new capital-raising plan will see the company issue 550 million new shares, raising about 130.3 billion yen ($884 million).

Management confirmed that most of the proceeds will be directed toward additional cryptocurrency purchases.

The announcement came alongside news that Metaplanet added 1,009 Bitcoin to its holdings on Monday, bringing its total to 20,000 coins worth more than $2 billion.

This purchase cements its position as the sixth-largest corporate holder of Bitcoin globally, according to BitcoinTreasuries.net.

Financing strategy faces mounting pressure

Metaplanet’s expansion has been funded in part through “moving strike warrants” issued to Evo Fund, a mechanism CEO Gerovich dubbed the “flywheel.”

The model enabled the firm to raise capital at low cost while its share price was climbing.

However, the approach has faltered in recent months as Metaplanet’s stock has retreated.

After soaring more than 740% over the past year, the company’s shares have fallen 54% since peaking in mid-June, even as Bitcoin prices rose modestly over the same period.

As the stock declined, warrant exercises generated less cash, slowing the pace of accumulation.

Analysts have also pointed to a narrowing of Metaplanet’s so-called “Bitcoin premium”—the gap between its market capitalization and the value of its holdings.

Once at more than eight times reserves in June, the multiple has since compressed to around two.

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

Long-term targets and growing investor base

To ease financing constraints, Metaplanet has proposed issuing up to 555 million preferred shares, potentially raising as much as ¥555 billion ($3.8 billion).

These securities would carry dividends of up to 6% and be capped at 25% of the value of Bitcoin holdings.

CEO Gerovich described the move as a “defensive mechanism” to protect common shareholders from dilution while keeping pace with global Bitcoin accumulation.

Despite the volatility, the company’s long-term ambitions remain bold.

Metaplanet aims to grow its Bitcoin treasury to 100,000 coins by the end of next year and 210,000 coins by 2027—around 1% of total global supply.

In the second quarter of 2025 alone, it reported a 468% yield on its Bitcoin holdings, generating ¥816 million in operating profit and ¥1,239 million in revenue.

Shareholder interest has surged alongside these developments, with the number of investors rising more than 1,000% in a year to 128,000.

Metaplanet now ranks among Asia’s most closely watched corporate Bitcoin holders, though analysts caution that its accumulation strategy could face limits if market conditions compress its premium further.