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Metaplanet Seeks Lifeline as Its Bitcoin-Fueled Flywheel Falters

Metaplanet’s Bitcoin flywheel is stalling after a sharp stock decline. The Tokyo-based firm now seeks lifelines through overseas share offerings and preferred stock, while still targeting 210,000 BTC by 2027.

Metaplanet, a Tokyo-listed firm originally known for its hotel business, reinvented itself in late 2024 as Japan’s boldest corporate Bitcoin accumulator. Much like MicroStrategy in the United States, the company crafted a strategy around using its stock market value as leverage: issue equity at a premium, funnel the proceeds into Bitcoin, and watch the cycle reinforce itself. The higher the stock price climbed, the more money it could raise, and the more Bitcoin it could acquire—a feedback loop executives proudly called the “flywheel.”

For a time, the approach seemed unstoppable. By mid-2025, Metaplanet’s stock was soaring, and its Bitcoin holdings grew rapidly. Investors bought into the narrative of a Japanese firm becoming a global Bitcoin proxy.

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When the Flywheel Broke

That momentum came to a halt in June 2025. Shares of Metaplanet plunged more than 50% from their highs, undermining the very model that had fueled its buying spree. The drop shrank the premium between the company’s market valuation and its net Bitcoin assets, leaving its funding mechanism crippled.

With its stock no longer a reliable source of cheap capital, the “flywheel” sputtered. The same loop that worked so well in bullish times proved fragile once confidence faded.

Searching for New Funding

Faced with this crisis, Metaplanet’s leadership unveiled a new set of tools to keep the accumulation drive alive. Chief among them:

  • Overseas Share Offering – The company announced plans to raise roughly ¥130.3 billion ($880 million) by issuing shares abroad.

  • Preferred Shares Proposal – In an unusual move for Japan, Metaplanet proposed issuing up to 555 million preferred shares, potentially raising around ¥555 billion ($3.7 billion). These shares would carry dividends up to 6%, offering investors income while giving the company an alternative channel of capital.

By early September, shareholders approved the preferred share authorization, giving Metaplanet a green light to pursue this unprecedented path.

Index Upgrade Adds Visibility

Not all news has been grim. In September’s semi-annual review, FTSE Russell upgraded Metaplanet from a small-cap to a mid-cap company. That shift earned the firm a place in the FTSE Japan Index and the broader FTSE All-World Index, exposing it to a new class of institutional investors.

This development could improve liquidity and visibility, but it doesn’t automatically repair the damaged confidence in its business model.

Big Bitcoin Ambitions Remain

Despite the turbulence, Metaplanet has not dialed back its ambitions. The company has already raised over $1.6 billion in 2025 for Bitcoin purchases, and its targets remain lofty: 100,000 BTC by the end of 2026 and 210,000 BTC by 2027.

For context, that would place Metaplanet among the largest corporate holders of Bitcoin globally, rivaling even MicroStrategy’s famous accumulation.

Risks of the New Path

Analysts caution that while preferred shares and overseas offerings provide lifelines, they come with trade-offs:

  • Dilution Concerns – Issuing large amounts of equity risks eroding the value of existing shareholders.

  • Dividend Obligations – Preferred shares create recurring cash outflows, reducing flexibility if markets sour.

  • Shrinking Premium – The decline in the stock-to-Bitcoin asset premium exposes a structural weakness in proxy strategies reliant on investor enthusiasm.

Unless sentiment recovers, Metaplanet could find itself in a cycle of heavy dilution without the soaring stock price that made its flywheel so efficient.

The Bigger Picture

Metaplanet’s struggle highlights both the potential and the fragility of Bitcoin proxy firms. They offer investors indirect exposure to the cryptocurrency, but their strategies are often highly sensitive to market mood and stock valuations.

If Metaplanet can successfully navigate its funding pivot, it may cement its role as Asia’s most aggressive Bitcoin corporate treasurer. If not, its stalled flywheel could become a cautionary tale about the limits of financial engineering in the volatile world of crypto.

Conclusion

Metaplanet’s story is still unfolding. The company has demonstrated extraordinary ambition and creativity in financing Bitcoin acquisitions, but the recent stock slump has forced it to reinvent its funding model. Preferred shares, overseas offerings, and index inclusion may buy time, yet the core question remains: can the flywheel spin again, or has the market grown wary of the mechanics behind it?

FAQs

What is Metaplanet’s “flywheel” model?

Metaplanet’s flywheel model refers to its strategy of issuing new stock at a premium and using the proceeds to buy Bitcoin. Rising stock prices fueled more issuance, which funded more Bitcoin purchases, in turn boosting market enthusiasm.

Why did the flywheel falter in 2025?

The model broke down after Metaplanet’s stock price dropped by more than 50% in mid-2025. Without high share prices, the company could no longer raise capital efficiently, leaving its Bitcoin buying spree under pressure.

How is Metaplanet seeking new funding?

The company has proposed two main strategies: an overseas share offering of about ¥130.3 billion ($880 million), and the issuance of up to 555 million preferred shares, which could raise an additional ¥555 billion ($3.7 billion).

What makes the preferred shares unusual?

Preferred shares are rare in Japan. Metaplanet’s plan includes offering dividends of up to 6%, providing investors with income while supplying the company with a defensive funding tool.

What are Metaplanet’s Bitcoin accumulation goals?

The company aims to hold 100,000 BTC by the end of 2026 and reach 210,000 BTC by 2027. That would make it one of the largest corporate Bitcoin holders worldwide.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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