- Metaplanet issues $135 million in perpetual preferred shares to expand its Bitcoin treasury strategy
- Saylor defends the Bitcoin treasury model despite volatility and possible index exclusions
- Treasury companies face premium compression as adoption slows and reserves trade below NAV
Tokyo-listed Metaplanet has approved the issuance of perpetual preferred shares worth ¥21.25 billion (about $135 million) as part of an ongoing effort to scale its corporate treasury strategy centered on Bitcoin, despite rising sector volatility.
The move comes amid increased scrutiny of public companies holding large digital-asset balance sheets and follows a renewed defense of that approach by Michael Saylor, founder of Strategy.
Metaplanet raises capital through perpetual preferred shares
The Japanese company’s board approved the issuance of 23.61 million Class B preferred shares on November 20 via a third-party allocation to institutional investors outside Japan.
Net proceeds are expected to be approximately ¥20.41 billion (about $130 million) after fees, with settlement scheduled for December 29, subject to shareholder approval at an extraordinary meeting on December 22.
Branded “MERCURY” (Metaplanet Convertible for Return and Yield), the preferred shares carry a fixed dividend of 4.9% and a conversion price set at ¥1,000 per share.
Each preferred share entitles the holder to an annual dividend of ¥12.25 (about $0.08), paid quarterly. The initial period ending December 31 will pay a reduced amount of ¥0.40 (about $0.003) per share.
With the conversion price set well above Metaplanet’s closing share price of ¥375 ($2.40) on November 19, near-term dilution concerns remain limited.
Representative director Simon Gerovich said the issuance is structured to “minimize dilution from issuing common shares while continuing to expand BTC holdings,” calling the offering a key step to scale Metaplanet’s Bitcoin treasury strategy.
Even though the shares trade below the value of their Bitcoin reserves, Metaplanet continues to build its digital-asset position and recently rolled out a ¥75 billion share buyback program backed by a $500 million credit facility.
Saylor reaffirms commitment to the Bitcoin treasury model
Meanwhile, Michael Saylor, founder and executive chairman of Strategy, dismissed market-turbulence concerns during a CNBC interview on November 14.
He said Strategy “can withstand an 80%–90% decline and continue operating,” citing minimal leverage of roughly 1.15x and long-dated debt maturities around 4.5 years.
Saylor argued that Bitcoin’s historical performance—averaging roughly 50% annual returns over the past five years despite several major drawdowns—supports its role as a corporate treasury asset.
He highlighted Strategy’s five-year return of 71%, which outpaced Nvidia, noting that no S&P 500 company matched that performance over the same period.
However, Strategy faces potential exclusion from indexes such as MSCI USA and Nasdaq-100 after index providers proposed excluding companies whose digital-asset holdings exceed 50% of total assets.
JPMorgan estimated that an MSCI exclusion alone could trigger up to $2.8 billion in passive outflows, with a decision expected by January 15.
Strategy’s stock is more than 60% below its November 2024 peak but remains up over 1,300% since it began buying Bitcoin in August 2020.
Bitcoin treasury firms navigate premium compression
The broader Bitcoin treasury sector has entered what Coinbase Research described as a “player versus player” environment.
Premiums to net-asset value have fallen from 3.76x in April to about 2.8x, while institutional adoption of Bitcoin has declined roughly 95% since July.
Of 168 listed treasury companies, 26 now trade below the value of their digital-asset holdings.
Metaplanet is one of the largest firms consistently trading below reserve value, accelerating its efforts to restructure capital.
The company plans to cap the issuance of preferred shares at 25% of Bitcoin NAV, aiming to build credibility in the preferred market while expanding its treasury.
The strategy remains active: Metaplanet purchased 8,178 Bitcoin this week at an average price of $102,171, bringing its holdings to 649,870 BTC.
Saylor reiterated his belief that Bitcoin will continue to outperform traditional assets, describing it as “digital capital” suited for long-term investors.