Metaplanet’s Bold Move to Boost Bitcoin Holdings: Perpetual Preferred Shares or Financial Trickery?

by

Ah, Metaplanet! The Tokyo-listed company with a penchant for acquiring Bitcoin, has announced its grand “Phase II” initiative, a plan so audacious it might just make you spill your tea in surprise. The goal? To issue perpetual preferred shares, which, of course, will help them raise capital for more Bitcoin acquisitions. It’s like asking for a second helping of cake but without the extra calories for the shareholders. Ingenious, no?

But wait! Before we all rush to buy tickets for this financial circus, let’s pause and reflect. This mechanism is designed to reduce dilution of common stock, while also allowing the company to continue its feverish Bitcoin shopping spree. A clever ploy, one might say, to keep the masses distracted while they hoard the digital gold.

Phase II: A New Capital Tool for Bitcoin Buffs

The company’s latest scheme is as ambitious as it is bold-a plan to acquire 100,000 BTC by the end of 2026, and a jaw-dropping 210,000 BTC by the end of 2027. How, you ask? Well, they’ve already accumulated around 30,823 BTC-up from a mere 1,762 BTC at the start of the year. It’s like watching a snail suddenly become a speedster on a caffeine rush. A nearly 17-fold increase! Bravo!

BREAKING: Metaplanet’s meteoric rise in Bitcoin holdings has just flipped Adam Back’s #Bitcoin Standard Treasury Company, becoming the 4th largest BTC holder worldwide.

– BitcoinTreasuries.NET (@BTCtreasuries) October 1, 2025

And now, they’ve overtaken Adam Back’s Bitcoin Treasury Company to become the fourth largest holder of BTC worldwide. Oh, the drama!

Previously, Metaplanet funded its Bitcoin buys by issuing equity, which, naturally, diluted shareholders. But they got visibility in return, even making it to the prestigious FTSE Japan Index. Who said you can’t have your cake and eat it too? Now, other Japanese companies are following in their footsteps, eager to diversify into Bitcoin just like the global big shots like MicroStrategy.

But How Does the Preferred Share Plan Work? Let’s Unveil the Magic!

Under Phase II, Metaplanet will issue perpetual preferred shares, which will come with a capped dividend yield of 6%. Don’t get too excited, folks. The structure promises investors a steady stream of returns, but any Bitcoin gains above that 6% mark will be absorbed by the company’s ever-growing enterprise value. Fancy, huh?

The management assures us that this model preserves the mNAV-per-share Bitcoin exposure-without further diluting common equity. I suppose, in financial jargon, this means ‘don’t worry, we’re keeping it classy.’

Meanwhile, Metaplanet is busy working on its “Bitcoin.jp” platform, where they plan to integrate education, events, and services to enhance Japan’s Bitcoin infrastructure. Because, why not add a little flair to their already glittering crypto empire?

But, dear reader, let us not be fooled by this glitzy show. Skeptics have pointed out that perpetual preferred shares carry interest-rate risks. Should Bitcoin underperform, the dividend costs could become a burden that even the mightiest financial wizard would struggle to lift. Not to mention, forced liquidations could cause a Bitcoin market disaster. Oh, the drama!

“Metaplanet’s Bitcoin Income Generation segment posted a staggering 115.7% quarterly revenue growth. As a result, we’re doubling our FY2025 revenue guidance. These results solidify the foundation for our planned preferred share issuance to further boost our Bitcoin Treasury strategy,” said Simon Gerovich, CEO of Metaplanet. Sounds too good to be true, doesn’t it?

Read More

2025-10-01 15:12