Metaplanet, a Tokyo-listed company with a large Bitcoin treasury, is facing financial pressure with a 54% drop in stock price since mid-June. This decline is impacting its capital-raising model, which relies on rising share prices to unlock funding for Bitcoin acquisitions. The company currently holds 18,991 BTC and aims to increase it to 100,000 BTC by 2026.

To counter the loss of momentum in its funding strategy, Metaplanet plans to raise approximately $880 million through a public share offering in overseas markets. Additionally, shareholders will vote on issuing up to $3.7 billion worth of preferred shares to raise capital without diluting common shareholders. This strategy is seen as a defensive mechanism to attract Japanese investors seeking yield.

Analysts are concerned about Metaplanet’s funding strategy as the Bitcoin premium, a key determinant of success, has decreased significantly. The company has suspended warrant exercises and is exploring preferred stock issuance to stabilize funding. Despite challenges, Metaplanet has been upgraded to a mid-cap stock in the FTSE Japan Index, indicating strong Q2 performance.

Read more at Cointelegraph: Metaplanet’s Bitcoin Fundraising Strategy Under Pressure as Stock Drops 54%