Metaplanet’s $1.4B Bitcoin Move Backfires as Stock Tumbles

• Metaplanet created three new subsidiaries in the US and Japan after raising $1.4 billion for Bitcoin expansion.

• Despite positive business developments and strong cash flow, the company’s stock fell 31% in one month.

• Bitcoin gained 6% weekly while major banks hold short positions against Metaplanet shares.

Metaplanet, Asia’s leading corporate Bitcoin treasury company, announced the creation of three new subsidiaries on September 17 to expand its Bitcoin income generation operations. The board approved establishing Metaplanet Income Corp in the United States, alongside Bitcoin Japan Inc. and Bitcoin Japan Co. Ltd.

The expansion came after Metaplanet had completed raising $1.4 billion through its international offering. This funding will support the company’s continued Bitcoin acquisition strategy and operational growth across multiple markets.

CEO Simon Gerovich emphasized the company’s financial strength, stating that Metaplanet maintains positive cash flow and generates consistent revenue through its Bitcoin income business. The new U.S. subsidiary will be wholly owned by Metaplanet Holdings Inc.

Strategic Moves in Japan Market

Metaplanet strengthened its position in the Japanese market by acquiring the premium domain “Bitcoin.jp.” This acquisition signals the company’s commitment to establishing a dominant presence in Japan’s cryptocurrency sector.

The company also adjusted minimum exercise prices for its 20th to 22nd series stock acquisition rights. These modifications aim to optimize the company’s equity structure while supporting future Bitcoin purchases.

Management released comprehensive Q&A materials addressing questions about overseas offerings and stock acquisition rights. These documents provide transparency regarding the company’s international expansion strategy and investment approach.

Metaplanet’s Strategic Domain Acquisition

Stock Performance Under Pressure

Metaplanet’s stock price declined 1.16% to 594 JPY despite the positive business developments. The stock traded between 571 JPY and 614 JPY during the session, reflecting continued market volatility.

Monthly performance shows significant weakness, with the stock falling 31% over the past month. Year-to-date returns dropped to 71%, indicating investor concern about the company’s aggressive Bitcoin acquisition strategy.

The U.S.-listed MTPLF shares performed even worse, declining 19% in one week and nearly 30% over the month. Year-to-date performance for the U.S. shares stands at 81%.

Major financial institutions, including Morgan Stanley, UBS, Jefferies, and JPMorgan, maintain substantial short positions against Metaplanet. These positions reflect Wall Street skepticism about the company’s Bitcoin-focused business model.

The stock decline contrasts sharply with Bitcoin’s recent performance. Bitcoin gained over 6% during the week, driven by expectations of potential Federal Reserve rate cuts. Market analysts anticipate further cryptocurrency gains if monetary policy becomes more accommodative.