- Metaplanet issues $135 million in perpetual preferred shares to scale its Bitcoin treasury strategy.
- Saylor defends Bitcoin treasury models despite volatility and potential index exclusions.
- Treasury companies face premium compression as adoption slows and valuations trade below reserves.
Metaplanet, listed in Tokyo, has approved a ¥21.25 billion ($135 million) issuance of perpetual preferred shares as part of its ongoing effort to scale a corporate treasury strategy focused on Bitcoin, even as sector volatility rises.
The move comes amid heightened scrutiny of publicly traded companies holding significant digital asset balances and follows renewed public defense of such strategies by Michael Saylor, founder and executive chairman of Strategy.
Metaplanet raises capital through perpetual preferred shares
The board of the Japanese company approved on November 20 the issuance of 23.61 million Class B preferred shares via a third party to foreign institutional investors.
Net proceeds are estimated at ¥20.41 billion ($130 million) after fees, with payment scheduled for December 29, subject to shareholder approval at an extraordinary general meeting on December 22.
The preferred shares—branded “MERCURY” (Metaplanet Convertible for Return and Yield)—carry a fixed dividend of 4.9% and a conversion price of ¥1,000 per share.
Each preferred share entitles holders to an annual dividend of ¥12.25 ($0.08), paid quarterly, although the initial period ending December 31 will pay only ¥0.40 ($0.003) per share.
With the conversion price set well above Metaplanet’s closing price on November 19 of ¥375 ($2.40), near-term dilution concerns are limited.
Representative Simon Gerovich said the structure is designed to “minimize dilution from issuances of common shares while expanding BTC holdings,” calling the offering an important step in scaling Metaplanet’s Bitcoin treasury strategy.
Despite trading below the value of its Bitcoin reserves, Metaplanet has continued to build its digital asset position and recently launched a ¥75 billion share buyback program, backed by a $500 million credit facility.
Saylor reiterates commitment to the Bitcoin treasury model
Meanwhile, Michael Saylor of Strategy addressed market turbulence in a CNBC interview on November 14, dismissing concerns about the strategy’s resilience.
He said Strategy can “withstand an 80%–90% drawdown and remain operational,” citing a modest leverage of roughly 1.15x and long-term debt maturities of about 4.5 years.
Saylor argued that Bitcoin’s historical performance—an average annual return of about 50% over the past five years despite several major drawdowns—supports its role as a corporate treasury asset.
He highlighted that Strategy’s five-year performance of 71% outpaced Nvidia and noted that no S&P 500 company has matched those returns.
However, Strategy faces the prospect of exclusion from the MSCI USA and Nasdaq 100 indexes after index providers proposed removing companies whose digital asset holdings exceed 50% of total assets.
JPMorgan estimates that exclusion from MSCI alone could trigger up to $2.8 billion in passive outflows, with final decisions expected by January 15 at the latest.
Strategy’s stock has fallen more than 60% from its peak in November 2024, but overall the company is still up more than 1,300% since it began accumulating Bitcoin in August 2020.
Bitcoin treasury firms navigate premium compression
The broader Bitcoin-treasury sector has moved into what Coinbase Research describes as a “player-versus-player” environment.
Premiums over net asset value have compressed from 3.76x in April to 2.8x, while corporate Bitcoin adoption has fallen 95% since July.
Of the 168 publicly traded treasury companies, 26 now trade below the value of their digital asset holdings.
Metaplanet was among the first major companies to consistently trade under its reserves, a trend that has accelerated capital restructuring efforts.
The company plans to limit preferred share issuance to 25% of the net value of its Bitcoin assets, aiming to build credibility in the preferred share market while expanding its treasury balance sheet.
Strategy has continued aggressive accumulation, purchasing 8,178 Bitcoin this week at an average price of $102,171, bringing its holdings to 649,870 BTC.
Saylor maintains that Bitcoin will continue to outperform traditional assets and describes it as “digital capital” suited for long-term investors.