Metaplanet, a Tokyo-listed firm focused on accumulating Bitcoin, is facing significant pressure as its stock price has fallen by 54% since mid-June. Despite Bitcoin's modest 2% increase during the same period, the company's stock decline has endangered its capital-raising strategy reliant on rising share prices. This has affected Metaplanet's funding model, particularly its relationship with Evo Fund, a key investor. In response to this liquidity squeeze, Metaplanet is exploring alternative fundraising options, including a public share offering anticipated to raise around 130.3 billion yen ($880 million). Additionally, shareholders are set to vote on issuing up to 555 million preferred shares, which could generate up to 555 billion yen ($3.7 billion). However, analysts have raised concerns about the viability of Metaplanet's strategy, as a critical metric—the Bitcoin premium—has significantly decreased, increasing the risk of dilution. Metaplanet has temporarily suspended warrant exercises as it seeks to stabilize its strategy amidst these challenges. Despite its current troubles, the company was recently upgraded to an inclusion in the FTSE Japan Index following strong quarterly performance.

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