Metaplanet’s Magical Money Mishap: 5% Drop Despite 20K BTC!

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Oh, dear readers, gather ’round for a tale as twisted as a chocolate factory in the land of cryptocurrencies! The stock of Metaplanet, a company so keen on Bitcoin that it could make Charlie Bucket drool, has taken a nosedive of 5% on Sept. 1. And 🤑

Why Is Metaplanet Stock Down Despite Bitcoin Purchases?

Now, you might think, “More Bitcoin, more money, right?” Wrong, my friends! Over the past month, Metaplanet’s stock has been as stable as a wobbly chair, and it’s now testing the support of 830 JPY after a 5.4% correction. The latest pressure? Well, it seems the company’s fundraising mechanism is feeling a bit like a deflated balloon. 😔

According to Bloomberg, unlike other stocks that are sinking due to general market gloom, Metaplanet’s drop is thanks to its unique “flywheel model.” Picture a giant wheel spinning faster and faster as the stock price rises, triggering warrants with its financing partner, Evo Fund, which then generates fresh capital to buy more Bitcoin. It’s like a magical money machine… until it stops spinning. 🌀

This model worked wonders as long as the stock price was sky-high. But as soon as Metaplanet shares started sliding, the magic wore off. Since June, the stock has fallen nearly 54%, causing the premium over its Bitcoin holdings to vanish faster than a chocolate bar in a classroom. 😱

To get back on track, Metaplanet plans to raise $884 million through overseas share offerings and will seek shareholder approval to issue up to 555 million preferred shares, potentially generating $3.8 billion to bulk up its Bitcoin treasure chest. Even Eric Trump, the crypto cowboy of the Trump family’s DeFi project World Liberty Financial, has been thrown a bone with 3.3 million shares. 🤠

Back in June, the firm’s market cap was more than eight times the value of its Bitcoin portfolio. Now, it’s down to about twice that value. This shrinking premium has sparked fears of shareholder dilution, making investors feel like they’re being served a smaller slice of the pie. 🥧

Metaplanet Takes BTC Holdings Above 20,000

But wait, there’s more! Despite the stock pressure, Metaplanet has kept up its Bitcoin buying spree. Their total Bitcoin portfolio now stands at 20,000 coins, costing them around $2 billion. That’s enough Bitcoin to make even the Grinch feel generous! 🎁

This latest purchase has put Metaplanet ahead of the Bitcoin miner Riot platform in BTC holdings. However, Bitcoin itself isn’t doing much better, trading sideways under $108,000 and down over 15% from its all-time high. Short-term price action looks bearish, with indicators suggesting oversold conditions and continued downward pressure. Analysts predict a strong capital rotation from BTC to ETH, leaving Bitcoin feeling a bit like the forgotten toy in the corner. 🧸

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2025-09-01 16:35