Japan’s Metaplanet, a trailblazer in corporate Bitcoin adoption, is facing a critical funding crisis that threatens its ambitious Bitcoin treasury strategy. With its stock plummeting 54% since June 2025, the company’s innovative “flywheel” model, inspired by MicroStrategy, is under strain. Despite holding 18,991 BTC valued at $2.1 billion, Metaplanet must adapt to sustain its goal of amassing 100,000 BTC by 2026. This article explores the crisis, its implications, and how Metaplanet is responding to secure its place in the Web3 economy.
The Flywheel Stalls: A Funding Model Under Pressure
Metaplanet’s strategy relies on a “flywheel” mechanism, using rising stock prices to issue securities, raise capital, and buy more Bitcoin. However, the 54% stock drop since mid-June 2025 has halted this cycle, rendering share subscription warrants issued to Evo Fund unattractive, thus squeezing liquidity. This divergence—Bitcoin rising 2% while Metaplanet’s stock craters—highlights vulnerabilities in its equity-driven model, forcing CEO Simon Gerovich to seek alternative funding solutions.
Strategic Shifts: New Financing Approaches
To counter the crisis, Metaplanet is pivoting to innovative financing. The company plans to raise $880 million through an overseas share offering and up to $3.7 billion via 555 million preferred shares, a rare instrument in Japan offering 6% dividends. These moves aim to stabilize funding without diluting common shareholders. Additionally, Metaplanet’s inclusion in the FTSE Japan Index in September 2025 boosts visibility, attracting institutional capital to support its Bitcoin acquisitions.
Broader Implications for Corporate Bitcoin Strategies
The crisis underscores the risks of tying corporate fortunes to volatile assets like Bitcoin. Metaplanet’s “Bitcoin premium”—the gap between its market cap and BTC holdings—has shrunk from 8x to 2x, signaling investor caution. Yet, its aggressive accumulation, holding 0.09% of Bitcoin’s supply, sets a precedent for Web3 treasury models. As Japan’s debt-to-GDP ratio exceeds 260%, Metaplanet’s bet on Bitcoin as a hedge against yen depreciation remains compelling, though it demands strategic resilience.
Conclusion: A Test of Vision and Adaptability
Metaplanet’s funding crisis is a pivotal moment for its Bitcoin-centric vision. By diversifying funding and leveraging global markets, the company aims to sustain its leadership in corporate Bitcoin adoption. As Web3 evolves, Metaplanet’s ability to navigate this storm will shape the future of decentralized treasury strategies, proving whether its bold bet can withstand market turbulence.
