Metaplanet’s Bitcoin strategy under threat, shares plummet 54%

Jakarta, Pintu News – Despite the recent rise in the price of Bitcoin (BTC), Tokyo-listed Metaplanet’s shares have seen a sharp decline of 54% since June. CEO Simon Gerovich is now looking for alternative funding to continue adding to the company’s Bitcoin (BTC) reserves, as the “flywheel” strategy it has been relying on is losing traction.

Metaplanet Performance to Date

The sharp drop in share price has reduced the attractiveness of exercising warrants, which has impacted liquidity and slowed down Metaplanet’s Bitcoin (BTC) acquisition strategy. Currently, Metaplanet owns 18,991 Bitcoin (BTC) and ranks as the seventh largest public corporate Bitcoin (BTC) holder in the world.

The company has set ambitious targets to expand its holdings to 100,000 Bitcoin (BTC) by the end of 2026 and 210,000 Bitcoin (BTC) by 2027. However, with existing strategies starting to stall, Metaplanet will have to find new ways to maintain and increase their Bitcoin (BTC) reserves.

Also Read: Altcoin Surge 2025: An Interesting Investment Opportunity to Watch As the End of the Year Approaches!

Metaplanet’s “Flywheel” Strategy Loses Momentum

The “flywheel” strategy that had been Metaplanet’s mainstay was now losing momentum as the stock’s decline continued. In response, Gerovich began exploring alternative funding avenues to support the company’s growth. Metaplanet has announced plans to raise about 130.3 billion yen ($880 million) through a public stock offering in overseas markets.

On September 1, shareholders will vote on the issuance of up to 555 million preferred shares, potentially raising up to 555 billion yen ($3.7 billion). Gerovich described the preferred shares as a “defense mechanism” that allows capital infusion without diluting common shareholders if the stock continues to decline.

Analysts’ concerns about metaplanets

Many analysts remain cautious as Metaplanet’s market value is now only about twice the value of their Bitcoin (BTC) holdings, down from a “Bitcoin premium” of over eight times in June. This concern arises due to the impact of the declining Bitcoin premium on the company’s strategy and stock performance.

Analysts expressed concerns that in the absence of a significant premium, Metaplanet’s attractiveness as an investment may be reduced, affecting their ability to attract further investment and sustain growth.

Conclusion

With the challenges faced by Metaplanet, the new measures taken by Gerovich may be key to maintaining and expanding the company’s Bitcoin (BTC) reserves. However, the success of this strategy largely depends on Metaplanet’s ability to navigate the volatile market and maintain investor confidence.

Also Read: Bitcoin Price Increase Prediction: Analyst Dave The Wave Reveals Potential Spike in September!

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Reference

• AMB Crypto. Metaplanets Bitcoin strategy on the ropes after 54% decline. Accessed on September 2, 2025