Metaplanet’s Bitcoin strategy on the ropes after 54% decline – Details

Key Takeaways

Despite Bitcoin’s recent price gains, Metaplanet’s stock has fallen by 54% since June, slowing its “flywheel” strategy. This is why CEO Simon Gerovich is pursuing alternative fundraising to continue growing the company’s Bitcoin reserves.

Tokyo-listed Metaplanet, known for its aggressive Bitcoin [BTC] accumulation, is facing mounting pressure after its share price continued to slide.

Despite Bitcoin gaining by roughly 2% over the same period, Metaplanet’s shares have fallen by 54% since mid-June – Putting its capital-raising “flywheel” under strain.

For those unaware, the “flywheel” strategy is a mechanism in which a company leverages rising stock prices to secure funding through MS warrants issued to its key investor, Evo Fund.

Metaplanet’s performance till date

Needless to say, the sharp decline has made warrant exercises less attractive, squeezing liquidity and slowing the company’s Bitcoin acquisition strategy, according to a report by Bloomberg.

According to Google Finance, the stock was also trading at 879 JPY at press time, down 2.22% in the last 24 hours and down 23.63% over the past month. Meanwhile, Metaplanet currently holds 18,991 BTC. It is now ranked as the seventh-largest public corporate Bitcoin holder.

The firm has also set ambitious targets, with goals to expand its holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027.