Metaplanet Inc. shareholders reportedly approved an $884 million capital raising proposal on Monday, as the Japanese Bitcoin treasury company battles a financing crunch triggered by its stock plummeting 54% since mid-June.
Three people who attfinished the extraordinary shareholder meeting in Tokyo’s Shipurchasea district confirmed the capital-raising plan passed, according to Reuters.
The proposal allows Metaplanet to sell up to 550 million new shares overseas alongside issuing preferred stock.
The financing scramble threatens to derail CEO Simon Gerovich’s Bitcoin accumulation strategy, which has faced challenges after the firm’s stock-depfinishent “flywheel” financing mechanism “slowed,” according to Mark Chadwick, a former Jefferies analyst cited by Bloomberg.
With Bitcoin trading near $109,000 and Metaplanet’s stock declining, Ray Youssef, CEO of p2p crypto app NoOnes, notified Decrypt that the divergence reveals “the moment you mix it in corporate equity with elements like leverage, warrants, and financial tricks, you open up a door to fragility that Bitcoin itself doesn’t have.”
While the preferred shares approach could enable Metaplanet to purchase time, the market could still see it as a “desperate shift,” he added.
Metaplanet’s declining stock has allegedly damaged its financing arrangement with Evo Fund, which relied on rising share prices to trigger warrant exercises that funded Bitcoin purchases.
This arrangement, known as the “flywheel,” has slowed down, reducing the capital available for Bitcoin purchases, according to Bloomberg. The firm’s holdings grew less than 50% since June compared to a 160% surge in the prior two months.
Decrypt has reached out to Metaplanet for comment, and will update this article should the firm respond.
Despite its funding challenges, Metaplanet announced during Monday’s meeting that it had acquired 1,009 BTC for approximately $112.2 million, bringing its total holdings to 20,000 BTC and achieving a “BTC Yield of 486.7% YTD 2025.”
The purchase builds Metaplanet the world’s sixth-largest public Bitcoin treasury company, surpassing Riot Platforms, according to Bitcoin Treasuries.
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