- Metaplanet issues $135 million in preferred shares to scale its Bitcoin treasury strategy.
- Saylor defends Bitcoin treasury models despite volatility and potential index exclusions.
- Bitcoin-treasury firms face compression of premiums as adoption slows and valuations fall below reserves.
Metaplanet, listed in Tokyo, has approved a perpetual preferred share offering worth ¥21.25 billion (approximately $135 million) as part of its ongoing effort to scale a corporate portfolio strategy focused on Bitcoin, even as sector volatility rises.
The move comes amid heightened scrutiny of publicly traded companies with significant digital-asset balance sheets and follows renewed public defense of such strategies by Strategy’s founder Michael Saylor.
Metaplanet raises capital through perpetual preferred shares
The Japanese company’s board approved an offering of 23.61 million Class B preferred shares on November 20 via a third-party placement to foreign institutional investors.
Net proceeds are estimated at ¥20.41 billion (about $130 million) after expenses, with payouts planned for December 29, pending 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 the holder to annual dividends of ¥12.25 (about $0.08), paid quarterly, although the initial period ending December 31 will pay only ¥0.40 (about $0.003) per share.
With the conversion price set well above Metaplanet’s closing price on November 19 of ¥375 (about $2.40), near-term dilution concerns are limited.
Director and representative Simon Gerovich said the structure is designed to “minimize dilution from common share issuance while allowing BTC holdings to continue to expand,” calling the offering a significant step in scaling Metaplanet’s Bitcoin treasury strategy.
Although Metaplanet currently trades below the value of its Bitcoin reserves, the company has continued to build its digital asset position and recently launched a ¥75 billion share buyback program supported by a $500 million credit facility.
Saylor reaffirms commitment to Bitcoin treasury model
Meanwhile, Strategy’s founder and executive chairman Michael Saylor dismissed concerns about market turbulence in an interview with CNBC on November 14.
He said Strategy “can survive an 80–90% drawdown and keep operating,” noting the company’s low leverage—only 1.15x—and long-dated debt with an average maturity of 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%, saying it outperformed Nvidia and asserting that no S&P 500 company has matched its returns.
However, Strategy faces possible exclusion from the MSCI USA and Nasdaq 100 indices after index providers proposed removing companies whose digital assets exceed 50% of total assets.
JPMorgan estimates that an MSCI exclusion alone could trigger up to $2.8 billion in passive outflows, with decisions expected by January 15 at the latest.
Strategy’s stock has fallen more than 60% from its peak in November 2024 but remains up over 1,300% since it began acquiring Bitcoin in August 2020.
Bitcoin-treasury companies navigate premium compression
The broader Bitcoin-treasury sector has entered what Coinbase Research describes as a “player-versus-player” environment.
Premiums relative to net asset value have compressed from 3.76x in April to 2.8x, while corporate Bitcoin adoption has declined 95% since July.
Of 168 publicly traded treasury companies, 26 now trade below the value of their digital assets.
Metaplanet was among the first large firms to consistently trade under its reserves, accelerating its capital-raising and restructuring efforts.
The company plans to cap preferred-share issuance at 25% of its Bitcoin net asset value, aiming to build credibility in the preferred-share market while expanding its treasury.
Strategy continues aggressive accumulation, buying 8,178 Bitcoin this week at an average price of $102,171, increasing its holdings to 649,870 BTC.
Saylor maintains that Bitcoin will continue to outperform traditional assets, describing it as “digital capital” suited to long-term investors.