Norway’s Norges Bank Investment Management (NBIM), responsible for managing the country’s substantial $1.7 trillion sovereign wealth fund, has confirmed its support for all five management proposals set to be discussed at Metaplanet’s Extraordinary General Meeting (EGM) on December 22. This endorsement underscores the firm’s commitment to a strategy centered around accumulating bitcoin, reflecting a growing trend among institutional investors.
As of June 30, NBIM held approximately a 0.3% stake in Metaplanet. The announcement of its vote was conveyed through Dylan LeClair, who serves as Metaplanet’s director of bitcoin strategy. The proposals presented are strategically designed to enhance the company’s capital flexibility while enabling non-dilutive bitcoin acquisition strategies.
One of the key proposals aims to streamline the company’s capital structure by reducing capital stock and reserves, thereby allowing for funds to be transferred to surplus. This adjustment would facilitate various financial maneuvers, including the distribution of dividends, share buybacks, or direct bitcoin acquisitions, all without increasing the number of outstanding common shares.
Additionally, another proposal seeks to elevate the company’s authorized share count. This includes the introduction of new preferred share classes, which Metaplanet believes will enable future capital raises to fund bitcoin purchases while ensuring flexibility within the capital structure.
A significant highlight of this plan is the introduction of perpetual preferred shares. The proposed Class A preferred shares, known as MARS, would offer variable monthly dividends and enjoy a senior position in the company’s capital hierarchy. On the other hand, the Class B preferred shares, termed MERCURY, would provide fixed quarterly dividends, conversion options, and cash redemption features. Metaplanet intends to authorize the issuance of MERCURY shares specifically to institutional investors, as part of a planned $150 million third-party allotment aimed at financing further bitcoin acquisitions.
The rationale behind the preferred share structure is to attract long-term institutional capital, while simultaneously minimizing potential dilution for common shareholders. Metaplanet has been taking steps to cement its status as a corporate treasury for bitcoin, often likening itself to several U.S. firms that have adopted similar financial strategies.
As a testament to its growing prominence in the bitcoin landscape, Metaplanet is currently recognized as the world’s fourth-largest corporate holder of bitcoin, with a portfolio of 30,823 BTC. The company continues to express its intentions to channel new capital into bitcoin purchases, directing additional resources towards income-generating bitcoin strategies and the redemption of existing corporate bonds.
Earlier in November, Metaplanet accessed $100 million from its $500 million credit facility. This loan, secured by just 3% of its bitcoin holdings, is designed to fund further acquisitions and expand its income-generating capabilities. The flexible, no-fixed-maturity loan accommodates repayment at any point and is linked to U.S. benchmark rates, although the identity of the lenders remains undisclosed.
With Metaplanet’s shares having jumped approximately 8% year-to-date, it remains a firm to watch as it evolves its innovative financial strategies around bitcoin accumulation and investment.
