The stock price of the Japanese listed company Metaplanet has experienced a 50% Slump! Urgently selling a $3.8 billion financing plan to sustain its Bitcoin strategy, Eric Trump personally went to Tokyo to oversee the operation.

The Japanese listed company Metaplanet, which previously saw its stock price surge by 400% due to a buying frenzy of Bitcoin, has fallen into crisis, with its stock price plummeting 54% since mid-June and its market capitalization evaporating by more than half. The company has urgently launched a $3.8 billion preferred stock financing plan, intending to continue increasing its Bitcoin holdings. The "flywheel financing" mechanism originally in collaboration with Evo Fund has come to a standstill due to the stock price crash, and Eric Trump, the son of U.S. President Trump, will personally attend the special shareholders' meeting in Tokyo on September 5 to participate in the vote.

Stock price crash and financing crisis

Metaplanet was once the hottest cryptocurrency concept stock in early 2025, but has now fallen into a free fall. Since mid-June, the stock price has cumulatively fallen by 54%, completely wiping out the gains from earlier this year. This crash has caused the company's market capitalization to Bitcoin Holdings value ratio to shrink sharply from 8 times in June to the current 2 times, approaching the "Bitcoin net asset value red line".

Emergency Financing Plan

To save the crisis, the company's president Simon Grovich (former Goldman Sachs trader) launched a dual financing plan:

1. Immediately launch the $884 million overseas placement
2. On September 5th, the shareholders' meeting voted on the issuance plan of 55.5 billion yen (approximately 380 million USD) of preferred shares.

If approved, this will become one of the largest special financing authorizations for Bitcoin in the history of Japanese companies. The company remains committed to its aggressive goal: to hold 100,000 BTC by the end of 2026 and to double that to 200,000 by 2027.

The flywheel financing mechanism has failed.

The core financing model designed by Glovich—the stock acquisition agreement signed with Evo Fund under Evolution Financial Group has effectively collapsed. This mechanism is achieved through moving strike warrants: when the stock price rises, Evo exercises at a low price and sells at a high price, using the price difference to purchase more Bitcoin. However, the big dump in stock prices has rendered the warrants worthless, and Evo has suspended all trading. SmartKarma analyst Mark Chadwick pointed out: "The flywheel has stopped."

The rise in Bitcoin holdings has sharply decreased.

Data shows that since June 30, Metaplanet's Bitcoin Holdings have grown by less than 50%, far below the 160% growth rate of the previous two months. Currently, it holds 18,991 BTC (worth approximately $2.1 billion), ranking seventh in the global listed company Bitcoin Holdings list, but there is a huge gap compared to the leader Strategy (630,000 coins).

Design of Preferred Shares and American Experience

The preferred shares designed by the company have the following characteristics:

• Up to 6% dividend yield
• Dividend payments shall not exceed 25% of the value of Bitcoin holdings.
• Avoid diluting common shareholders' equity

Grovich referred to this as a "defensive mechanism": "If the stock price continues to fall close to the value of Bitcoin, we are unwilling to sell common stock." This financing tool is relatively rare in the Japanese market, but has been widely used in the United States by Strategy.

Trump family deeply involved

It is noteworthy that Eric Trump has obtained the acquisition rights for 3.3 million shares of Metaplanet and will attend the Tokyo shareholders' meeting in an advisory capacity. This linkage between politics and business has attracted widespread attention in the market, and analysts believe that the endorsement from the Trump family may influence the likelihood of the financing plan being approved.

Industry Warnings and Outlook

Currently, over 170 publicly listed companies worldwide hold a total of $111 billion in Bitcoin, but capital is not unlimited. As analyst Benoist pointed out: "Everyone needs to ask themselves, when does this model come to an end?" The case of Metaplanet reveals the inherent risks of companies holding cryptocurrencies:

1. The double-edged sword effect formed by the high correlation between stock prices and Bitcoin prices.
2. Financing ability determines the upper limit of Holdings expansion.
3. The capital operation dilemma after the market premium disappears

Conclusion

The predicament of Metaplanet reflects the structural challenges of cryptocurrency concept stocks: when market enthusiasm fades, fundamental problems will eventually emerge. Whether the preferred stock financing plan can pass not only relates to the company's future but will also become a touchstone for testing the market's confidence in cryptocurrency asset allocation models. Investors should pay attention to the results of the shareholders' meeting vote on the 5th, while being wary of the valuation return risk after the Bitcoin premium disappears. The development path of cryptocurrency listed companies is undergoing unprecedented stress testing.