Metaplanet Inc. shareholders have approved an $884 million capital plan after a crucial meeting in Tokyo’s Shibuya district on Monday.
The plan will allow the company to sell up to 550 million new shares overseas and issue preferred stock, according to Reuters.
The move comes as the Japanese Bitcoin treasury firm struggles with a financing crunch following a 54% drop in its stock price since mid-June. Despite the pressure, CEO Simon Gerovich confirmed the vote passed, setting the stage for the company to expand its Bitcoin strategy.
At the meeting, Metaplanet announced the purchase of 1,009 BTC worth about $112.2 million. This pushed its total holdings to 20,000 BTC, valued at more than $2 billion, making it the world’s sixth-largest public Bitcoin treasury, according to Bitcoin Treasuries.
Meanwhile, the shareholders also approved new governance measures, which includes more authorized shares, virtual shareholder meetings, and the creation of perpetual preferred shares. These changes are designed to boost flexibility and strengthen financing options for the company.
Notably, Eric Trump, who became a Metaplanet adviser in March, attended the meeting alongside Gerovich. Wearing matching company jerseys, he called Gerovich “the one leading the front in all of Asia,” while comparing him to MicroStrategy’s Michael Saylor, Reuters reported.
However, not everyone is convinced the plan will solve Metaplanet’s problems. “The moment you mix it in corporate equity with elements like leverage, warrants, and financial tricks, you open up a door to fragility that Bitcoin itself doesn’t have,” said Ray Youssef, CEO of crypto app NoOnes, in comments to Decrypt.
Bloomberg noted that the company’s “flywheel” financing system, which relied on rising stock prices to fund Bitcoin buys, has slowed as shares fell. This has limited capital growth and put pressure on its goal of owning 210,000 BTC by 2027.
Once a hotel operator, Metaplanet has transformed into a Bitcoin-focused firm. Its Bitcoin per share rose 2,274% over the past year, and the company was recently added to the FTSE Japan Index.
Metaplanet Stock Price | Source: Yahoo Finance
That said, the company shares closed Monday at $5.65, down 5.46%, according to Yahoo Finance.
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