{"id":9311,"date":"2026-08-19T20:35:15","date_gmt":"2026-08-19T17:35:15","guid":{"rendered":"https:\/\/handoli.com\/index.php\/2026\/08\/19\/metaplanet-deal-puts-king-of-death-spiral-financing-on-both-sides\/"},"modified":"2026-08-19T20:35:15","modified_gmt":"2026-08-19T17:35:15","slug":"metaplanet-deal-puts-king-of-death-spiral-financing-on-both-sides","status":"publish","type":"post","link":"https:\/\/handoli.com\/index.php\/2026\/08\/19\/metaplanet-deal-puts-king-of-death-spiral-financing-on-both-sides\/","title":{"rendered":"Metaplanet deal puts \u2018King of Death Spiral Financing\u2019 on both sides"},"content":{"rendered":"
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Japanese BTC treasury company Metaplanet has disclose<\/a>d<\/a> a deal that will put a man Bloomberg<\/em> describes<\/a> as \u201cTokyo\u2019s King of Death Spiral\u00a0Financing\u201d on both sides of the takeover.<\/p>\n

Metaplanet wants to take control of Nasdaq gaming company Super League Enterprise in a $135 million deal<\/a>.<\/p>\n

Once the takeover is complete, Evo Fund, a Cayman islands fund launched by Princeton graduate and former Barings trader Michael Lerch, will pick up warrants for up to 10 million Super League shares.<\/p>\n

It also financed<\/a> Metaplanet\u2019s BTC buying in Tokyo, putting Lerch on both sides of the deal.<\/strong> <\/p>\n

Moreover, Evo\u2019s fund bought<\/a> into Super League in September 2025 via a \u201c$10 million strategic equity investment.\u201d<\/p>\n

That infusion helped Super League, which will change its name to Superplanet once the deal passes shareholder approval, regain compliance with Nasdaq\u2019s equity rules. <\/p>\n

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Metaplanet pitches stock buybacks after 96% mNAV decline<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Read more: MetaPlanet tanking 35% sparks fury: \u2018Short squeeze them to Valhalla!\u2019<\/a><\/em><\/p>\n

Evo Fund\u2019s warrants dilute shareholders<\/h2>\n

Japanese business press has nicknamed<\/a> Lerch the \u201cmysterious alchemist\u201d for how his fund\u2019s warrants dilute companies.<\/p>\n

Indeed, Evo is Japan\u2019s largest buyer of floating-strike equity warrants. Bloomberg<\/em> describes Lerch as synonymous with the death spiral financing trading strategy.<\/p>\n

Specifically, his warrants often price using a moving, rather than static, strike price. As a result, rights built into clauses of Lerch\u2019s contracts allow Evo to exercise convertability into stock at a lower price as shares fall.<\/strong><\/p>\n

Each exercise dilutes existing holders even more as the price declines.<\/p>\n

For scale, consider that Evo\u2019s 2025 warrant transactions<\/a> in Japan exceeded \u00a51 trillion, or roughly $6.3 billion. That captured more than 80% of the country\u2019s floating-warrant market.<\/p>\n

On the Super League side, Evo is now a named counterparty. Lerch\u2019s fund will probably receive warrants under the filing that hands Metaplanet control.<\/p>\n

More details on the Metaplanet deal<\/h2>\n

Super League\u2019s disclosure<\/a> lists two subscription agreements dated the same day.<\/p>\n

Metaplanet\u2019s Florida subsidiary<\/a>, Metaplanet Holdings, subscribes for 44,859,400 common shares at $3 each. It also gets 100 shares of convertible preferred stock and four 10-year warrants covering up to 381 million shares.\u00a0<\/p>\n

Evo\u2019s agreement<\/a> grants two two-year warrants for up to 10 million shares, at fixed prices of $3 and $5.55. That is, and somewhat uncharacteristic for the \u201cTokyo\u2019s King of Death Spiral\u00a0Financing,\u201d not a floating strike on this deal.<\/p>\n

Sadakazu Osaki, a researcher at Japan\u2019s Nomura Research Institute, warned<\/a> that floating-strike warrants like Evo\u2019s are \u201cthe last financing resort for underperforming companies.\u201d<\/p>\n

Metaplanet has used<\/a> exactly that instrument, at enormous scale, to fund its BTC purchases.<\/p>\n

Got a tip? Send us an email securely via\u00a0Protos Leaks<\/em><\/a>. For more informed news and investigations, follow us on\u00a0X<\/a>,\u00a0Bluesky<\/em><\/a>, and\u00a0Google News<\/em><\/a>, or subscribe to our\u00a0YouTube<\/em><\/a>\u00a0channel.<\/em><\/p>\n

The post Metaplanet deal puts \u2018King of Death Spiral Financing\u2019 on both sides<\/a> appeared first on Protos<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Japanese BTC treasury company Metaplanet has disclosed a deal that will put a man Bloomberg describes as \u201cTokyo\u2019s King of Death Spiral\u00a0Financing\u201d on both sides of the takeover. Metaplanet wants to take control of Nasdaq gaming company Super League Enterprise in a $135 million deal. Once the takeover is complete, Evo Fund, a Cayman islands […]<\/p>\n","protected":false},"author":1,"featured_media":9312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[147],"tags":[],"class_list":["post-9311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-invest"],"_links":{"self":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/posts\/9311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/comments?post=9311"}],"version-history":[{"count":0,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/posts\/9311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/media\/9312"}],"wp:attachment":[{"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/media?parent=9311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/categories?post=9311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/handoli.com\/index.php\/wp-json\/wp\/v2\/tags?post=9311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}