Metaplanet, a company aggressively accumulating Bitcoin, is facing pressure as its stock price plummets. This threatens their fundraising model.
Stock Price Issues and Funding Strategy
The company’s stock has dropped 54% since mid-June, despite Bitcoin gaining around 2%. This decline has put stress on their capital-raising mechanism, reliant on rising share prices.
Plans for Raising Funds in Overseas Markets
In response to these challenges, CEO Simon Gerovich is turning to alternative fundraising. Metaplanet announced plans to raise approximately 130.3 billion yen ($880 million) through a public share offering in overseas markets.
Strategy Risks Due to Falling Bitcoin Premium
Analysts are cautious due to the falling Bitcoin premium, which has decreased from over 8x in June to just 2x, increasing dilution risk. The company has suspended Evo’s warrant exercises from September 3 to 30.
Metaplanet is experiencing significant financial difficulties amid declining stock prices and uncertainty regarding its Bitcoin accumulation strategy. The company’s future depends on its ability to adapt to changing market conditions.
