Metaplanet Inc. (OTC: MTPLF) has initiated a substantial capital-raising exercise amounting to $127 million through a third-party allotment involving the issuance of new common shares. This move serves the company's objective to expand its Bitcoin (CRYPTO: BTC) holdings amid evolving corporate strategy.
The controversy around the stock has been triggered by the 3.5% decline in share price subsequent to the announcement, reflecting investor caution despite the scale of the financing event.
Capital Raise Composition and Mechanics
As part of the fundraising, Metaplanet plans to issue 24.53 million newly authorized common shares at a price of ¥499 per share, targeting a gross capital injection of approximately ¥12.24 billion, which translates to around $127 million in U.S. dollars. The allotment process is slated to settle on February 13.
Complementing the common shares issuance, the company introduced 159,440 stock acquisition rights (SARs), commonly referred to as warrants in other markets. These warrants carry an initial subscription price of ¥523 and possess an exercise price set at ¥547 per share. If all warrants were exercised, Metaplanet would garner an additional ¥8.8 billion in capital and potentially dilute its shareholder base with up to 15.94 million new shares added to the market.
The immediate dilution from the base offering stands at an estimated 3.54% of existing shares. When aggregated with other financing activities from the preceding six months, total dilution could amount to 23.99%, a material consideration for current and prospective shareholders evaluating ownership stakes.
Allocation of Raised Funds
Regarding deployment, the company earmarks approximately ¥14 billion ($115 million) toward Bitcoin acquisitions scheduled between February 2026 and February 2027, solidifying its position as a digital asset acquisition-focused entity.
An allocation of ¥1.56 billion ($13 million) is dedicated to supporting its Bitcoin-centric income initiatives, including derivative trading margins and options strategy funding, intended to optimize returns on its cryptocurrency exposure.
Further, ¥5.19 billion ($43 million) is earmarked for repaying existing credit facility borrowings, a move that aims to maintain financial flexibility and preserve borrowing capacity for future strategic initiatives.
Business Strategy and Bitcoin Growth
Metaplanet's Bitcoin holdings exhibited significant growth, increasing from 1,762 BTC at the close of 2024 to 35,102 BTC by the conclusion of 2025. This growth equates to an impressive 568% yield on Bitcoin assets during 2025 alone.
The company describes itself as a "Bitcoin treasury company," a designation that reflects its corporate strategy pivot undertaken in April 2024. This shift adheres to directives named the "21 Million Plan" and the "555 Million Plan," which outline the company's longer-term ambitions in cryptocurrency asset accumulation and monetization.
Investor Participation and Terms
The third-party allotment was executed through Cantor Fitzgerald, which placed shares with a range of offshore institutional investors, including Anson Opportunities Master Fund, Alyeska Master Fund, and Brookdale Global Opportunity Fund, among others.
Notably, these purchasers are not subject to long-term holding agreements and represent purely investment-driven stakeholders without intentions of acquiring strategic influence over Metaplanet.
To address stability concerns, Metaplanet imposed a 30-day lock-up restriction preventing further share issuances without investor approval. Additionally, investors received participation rights in any comparable financing activities occurring within the subsequent 12 months, ensuring they can maintain proportional ownership if further capital raises occur.
Market Dynamics and Dilution Considerations
Metaplanet's approach aligns with tactics employed by peers such as Strategy Inc. (NASDAQ: MSTR), involving equity capital raises to fund Bitcoin purchases.
The shared price currently trades at approximately 3.11% below the recent one-month average and 14.41% below the six-month average, offering new investors a discounted entry point relative to prior trading levels.
The structure of warrants introduces a staged dilution effect dependent on stock performance. Should the share price surpass ¥547, warrant exercise becomes likely, leading to further capital inflows at relatively higher prices and increased dilution. Conversely, failure to attain this threshold would constrain dilution to the proceeds of the initial offering only.
Technical Market Analysis
Following an 83% price rally from the November low of $2.18, the stock experienced a 3.5% drop coinciding with the capital raise announcement. Price movement places the shares between the 20-day exponential moving average at $3.21 and the 50-day exponential moving average at $3.13, with resistance levels identified at the 100-day ($3.57) and 200-day ($3.86) price points.
The parabolic SAR indicator at $3.80 is recognized as critical for sustained bullish momentum. Additionally, a rounding bottom pattern formed from November through December established a foundational support level near $2.18.
Key technical milestones include surpassing the $3.80-$4.00 resistance zone to target $5.00-$5.50 range, whereas a breach below $2.80 support could invalidate bullish patterns and expose the stock to a downside target of $2.50-$2.40.