Japanese Firm Metaplanet Faces Steep Decline Despite Aggressive Bitcoin Strategy

Metaplanet's shares are experiencing a severe downturn, with the Japanese company's stock price plummeting approximately 70% since its peak in June. This dramatic decline persists despite the firm's ambitious cryptocurrency initiatives and substantial capital measures.

In a bold move to advance its cryptocurrency objectives, Metaplanet has activated $100 million from a larger $500 million credit facility. The company is using its existing Bitcoin holdings as collateral for this financing—a strategic gamble given the digital asset's notorious price volatility.

Management has allocated these newly acquired funds across three specific areas:
* Expanding digital reserves through additional Bitcoin purchases
* Developing revenue-generating business operations
* Implementing share buyback programs to support the stock price

Company representatives emphasize that the borrowed amount represents just 3% of their total Bitcoin reserves, asserting that all credit arrangements remain within conservative safety margins.

Should investors sell immediately? Or is it worth buying Metaplanet?

Comprehensive Response to Market Pressure

The stock's brutal descent has prompted Metaplanet to implement drastic countermeasures. The corporation's board has authorized an extensive share repurchase initiative valued at up to 75 billion yen, targeting a maximum of 150 million shares.

Concurrently, Metaplanet is overhauling its capital acquisition approach. The company has suspended its stock option program from October 20 through November 17, 2025, to prevent further shareholder dilution. Going forward, Metaplanet plans to utilize preferred shares as the primary mechanism for financing additional Bitcoin acquisitions.

Market Valuation Falls Below Bitcoin Holdings

In a particularly frustrating development for stakeholders, Metaplanet's current market valuation sits below the worth of its Bitcoin portfolio. This discrepancy exists despite the company's position as the world's fourth-largest corporate Bitcoin holder, with the stock price failing to reflect its aggressive digital asset strategy.

The firm has attempted to generate supplementary income through issuing and selling cash-secured Bitcoin options. However, these innovative financial approaches have thus far proven insufficient to restore investor confidence amid the ongoing market skepticism.