Japanese Bitcoin Company Eyes $3.8 Billion Funding Push as Stock Valuation Crumbles

A major Japanese cryptocurrency-focused public company is racing to secure $3.8 billion through an ambitious share issuance plan, even as its market capitalization has been cut in half within 90 days. The company, which launched 2025 with explosive growth momentum—posting gains exceeding 400%—now finds itself caught in a severe correction, with share prices down more than half since mid-June.

The leadership is implementing an emergency capital strategy: first announcing an $884 million overseas share offering this week, then seeking shareholder approval for issuing 555 million preferred shares at a Tokyo extraordinary general meeting. If approved, this represents one of Japan’s largest single Bitcoin-acquisition authorizations from a publicly-traded entity.

The Flywheel Strategy Breaks Down

The core issue driving this financing scramble is the breakdown of the company’s previous capital-raising mechanism. For months, a structured warrant arrangement with a counterparty fund had allowed the firm to accumulate Bitcoin in a self-reinforcing cycle—as stock prices climbed, the partner could execute positions at advantageous levels and redirect profits back into Bitcoin purchases. This system generated 160% growth in holdings over two months.

That engine has stalled completely. Since late June, Bitcoin accumulation has slowed to under 50% growth as the stock collapse eliminated the financial incentive for warrant exercise. With share prices plummeting, the margin between the company’s market value and its Bitcoin holdings has compressed dramatically—from an 8x premium in June to just 2x currently.

This compression creates an urgent strategic problem: selling additional equity when the gap is this narrow risks diluting common shareholder returns. The leadership explicitly framed the preferred share approach as addressing this constraint.

Current Bitcoin Holdings and Future Targets

The company currently holds approximately 19,000 BTC tokens, valued near $2.1 billion at present prices. Management has publicly committed to reaching 100,000 BTC by the end of 2026, followed by a doubling target for 2027—an aggressive accumulation strategy that demands substantial capital deployment.

To execute this plan amid equity market headwinds, the company suspended existing warrant activities through late September, clearing the path for the preferred share vote. These new preferred instruments would carry a maximum 6% dividend, capped proportionally to the firm’s Bitcoin reserves.

Broader Market Context

This represents one of more than 170 public companies now holding Bitcoin as a treasury asset. Combined institutional holdings exceed $111 billion in value, reflecting growing mainstream adoption of cryptocurrency by corporate balance sheets. The Japanese firm currently ranks in the top tier of Bitcoin-holding corporations globally, though its aggressive accumulation targets require it to remain ahead of slower-moving competitors.

The capital markets test comes amid significant investor scrutiny of whether this Bitcoin-buying cycle can continue indefinitely or if capital availability will eventually constrain further expansion. The Tokyo shareholder meeting will determine whether the company can proceed with its third-largest single funding authorization attempt this year.