The company’s capital-raising model relied on MS warrants issued to Evo Fund. This “flywheel” mechanism depended on rising stock prices. However, the recent decline reduced its effectiveness. Evo Fund now finds these options less attractive, squeezing Metaplanet’s liquidity. Consequently, Bitcoin buying slowed. 

Currently, Metaplanet holds 18,991 BTC, ranking it seventh among publicly traded companies in Bitcoin holdings. Management aims for 100,000 BTC by 2026 and 210,000 BTC by 2027, though financial pressures put these targets at risk. 

Fundraising and FTSE Upgrade 

To stabilize funding, Metaplanet plans an overseas public offering worth ¥130.3 billion ($880 million). Shareholders will also vote on issuing 555 million preferred shares, potentially raising ¥555 billion ($3.7 billion). 

CEO Simon Gerovich described the preferred shares as a “defensive mechanism.” These shares offer up to 6% annual dividends and initially cover 25% of Bitcoin assets, providing attractive returns for Japanese investors. 

Analysts, however, remain cautious. Natixis’ Eric Benoit noted that the Bitcoin premium determines strategy success. This premium dropped from 8x in June to 2x, increasing risk. 

Evo Fund suspended MS warrant purchases between September 3–30, enabling the preferred share issuance. Whether this stabilizes Metaplanet’s funding remains uncertain. 

Meanwhile, Metaplanet moved from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review. The inclusion in the FTSE Japan Index followed strong second-quarter performance and provided partial stock support. 

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