Metaplanet's $135 Million Deal Puts Controversial Financier on Both Sides of Takeover

Metaplanet to Acquire Nasdaq Gaming Company Super League Enterprise

Japanese company Metaplanet, which holds Bitcoin as part of its treasury, announced a $135 million deal to take control of Nasdaq-listed gaming firm Super League Enterprise. The deal involves Metaplanet's Florida subsidiary buying 44.86 million common shares at $3 each, along with preferred stock and warrants.

Super League Enterprise, which plans to rename itself Superplanet after the deal, received a $10 million investment from Evo Fund in September 2025. That investment helped the company regain compliance with Nasdaq's equity rules. Evo Fund is led by Michael Lerch, a former Barings trader described by Bloomberg as "Tokyo’s King of Death Spiral Financing."

Key Details of the Deal

• Metaplanet will acquire Super League Enterprise for $135 million.
• Evo Fund, led by Michael Lerch, is involved on both sides of the deal: as a lender to Metaplanet and as a warrant holder in Super League.
• Evo Fund previously invested $10 million in Super League in September 2025.
• Metaplanet will receive four 10-year warrants covering up to 381 million shares.
• Evo Fund will receive two-year warrants for up to 10 million shares at fixed prices of $3 and $5.55.

Who Is Michael Lerch and Why Is He Controversial?

Michael Lerch, a Princeton graduate and former Barings trader, runs Evo Fund, a Cayman Islands-based fund. Japanese business press has nicknamed him the "mysterious alchemist" for his use of equity warrants, which can dilute existing shareholders.

Bloomberg describes Lerch as synonymous with "death spiral financing," a strategy where warrants are priced using a moving strike price. This means Evo Fund can convert its warrants into stock at a lower price as the company's share price falls, diluting existing shareholders further. In 2025, Evo Fund's warrant transactions in Japan exceeded ¥1 trillion (about $6.3 billion), capturing over 80% of the country's floating-warrant market.

What the SEC Filing Reveals

Super League Enterprise's SEC filing shows two subscription agreements dated the same day. Metaplanet's subsidiary will buy 44.86 million common shares at $3 each and receive 100 shares of convertible preferred stock, plus four 10-year warrants for up to 381 million shares.

Evo Fund's agreement grants it two-year warrants for up to 10 million shares at fixed prices of $3 and $5.55. Unlike many of Evo Fund's past deals, these warrants do not use a floating strike price, which is typically more controversial.

Expert Warns About Floating-Strike Warrants

Sadakazu Osaki, a researcher at Japan’s Nomura Research Institute, called floating-strike warrants "the last financing resort for underperforming companies." Metaplanet has used this type of financing to fund its Bitcoin purchases.

What Is Confirmed

• Metaplanet announced a $135 million deal to acquire Super League Enterprise.
• Evo Fund, led by Michael Lerch, is involved on both sides of the deal.
• Evo Fund previously invested $10 million in Super League in September 2025.
• Metaplanet will receive warrants for up to 381 million shares.
• Evo Fund will receive warrants for up to 10 million shares at fixed prices.
• Bloomberg and Japanese business press describe Lerch as a controversial figure in financing.

What Is Still Unclear

• Whether the deal will receive shareholder approval.
• The exact impact of the warrants on existing shareholders.
• Why Evo Fund's warrants in this deal use fixed prices instead of floating strike prices.

Why This Deal Matters

This deal highlights the growing trend of companies holding Bitcoin as part of their treasury strategy. It also brings attention to controversial financing methods like death spiral warrants, which can significantly dilute existing shareholders. The involvement of a major player like Evo Fund on both sides of the deal raises questions about potential conflicts of interest and the long-term impact on shareholder value.

Sources

• Protos
• SEC Filing
• Bloomberg