In a strategic move aimed at bolstering its Bitcoin holdings, Metaplanet, a company listed in Tokyo, has unveiled its new “Phase II” initiative. This plan involves the issuance of perpetual preferred shares, intended to raise capital specifically for further acquisitions of Bitcoin.
The structure of these preferred shares is designed to mitigate the dilution of common stock while allowing the company to maintain its aggressive acquisition stance. By implementing this strategy, Metaplanet positions itself to rapidly expand its Bitcoin reserves without adversely impacting existing shareholders.
Setting ambitious goals, the company has launched its “555 Million Plan,” targeting a total of 100,000 BTC by the close of 2026, followed by an increase to 210,000 BTC by the end of 2027. Currently, Metaplanet’s Bitcoin holdings stand at approximately 30,823 BTC, a significant rise from just 1,762 BTC at the beginning of the year—an increase of nearly 17 times. This remarkable growth has enabled Metaplanet to surpass the holdings of Adam Back’s firm, now ranking fourth among global Bitcoin holders.
Historically, Metaplanet funded its acquisitions via equity issuance, which diluted shareholder value but improved market visibility and earned the company a spot in the FTSE Japan Index. This approach aligns with a broader trend of Japanese companies increasingly viewing Bitcoin as a viable treasury asset, akin to the practices of global leaders like MicroStrategy.
The newly introduced preferred shares, which come with a capped dividend yield of 6%, are designed to provide investors with consistent returns. Notably, any increase in Bitcoin’s value beyond this yield enhances the company’s overall enterprise value. According to management, this model preserves the mNAV—market net asset value—of Bitcoin exposure on a per-share basis without additional dilution of common equity.
In addition to its Bitcoin acquisition strategy, Metaplanet also plans to expand its “Bitcoin.jp” platform. This initiative is aimed at enhancing educational resources, hosting events, and providing services to further develop the Bitcoin infrastructure within Japan.
However, some market observers express concerns regarding the risks associated with perpetual preferred shares, particularly in relation to interest rates and potential underperformance of Bitcoin, which could lead to burdensome dividend costs. Analysts have also warned that forced liquidations during broader equity market downturns may have adverse effects on Bitcoin markets, contributing to increased volatility.
In a recent statement, Simon Gerovich, CEO of Metaplanet, highlighted the company’s significant revenue growth, reporting a 115.7% increase in quarterly revenue from its Bitcoin Income Generation segment. This strong performance has prompted the company to double its revenue guidance for FY2025, reinforcing the foundation for the planned preferred share issuance that supports its Bitcoin treasury strategy.
