Tokyo-listed Metaplanet has approved a $135 million perpetual preferred share offering to fund Bitcoin acquisitions, while Strategy founder Michael Saylor defended corporate treasury strategies amid mounting market volatility.
The Japanese firm’s Class B preferred shares carry a 4.9% fixed dividend and a ¥1,000 conversion price, as Asia’s largest Bitcoin treasury company doubles down on digital asset accumulation despite trading below the value of its crypto holdings.
The payment date is scheduled for December 29, pending shareholder approval at an extraordinary general meeting on December 22.
Metaplanet’s board resolved on November 20 to issue 23.61 million Class B preferred shares through third-party allotment to overseas institutional investors, raising ¥21.25 billion ($135M) with estimated net proceeds of ¥20.41 billion ($130M) after expenses.
Each preferred share entitles holders to ¥12.25 ($0.08) in annual dividends distributed quarterly, though the initial period ending December 31 pays just ¥0.40 ($0.003) per share. The conversion price sits significantly above Metaplanet’s November 19 closing price of ¥375 ($2.40), limiting immediate dilution concerns.
The Class B shares, branded “MERCURY” for Metaplanet Convertible for Return & Yield, combine quarterly fixed dividends with equity upside through conversion rights into common stock.
The executive chairman emphasized that his company maintains minimal leverage at just 1.15 times, with debt extending for 4.5 years. “If you want to ride the rocket, you got to be prepared to pull the G’s,” Saylor said, noting Bitcoin has experienced six major drawdowns over five years while still delivering 50% average annual returns.
Michael Saylor pushed back against concerns about Bitcoin treasury models during a November 14 CNBC interview, declaring that Strategy “can withstand an 80%–90% drawdown and keep operating” despite recent market turbulence.
MSCI proposed in October consultations to exclude companies whose digital asset holdings exceed 50% of total assets, viewing such firms as closer to investment funds rather than operating businesses.
Strategy’s stock has plunged over 60% from its November 2024 record highs, though it remains up more than 1,300% since initiating Bitcoin purchases in August 2020.
JPMorgan analysts estimated MSCI removal alone could trigger up to $2.8 billion in outflows from passive funds, with decisions expected by January 15.
Metaplanet became the first major treasury company to consistently trade below its holdings in October, prompting a 75 billion yen share repurchase program backed by a $500 million credit facility. Strategy continues aggressive accumulation despite headwinds, acquiring 8,178 Bitcoin this week at $102,171 per coin, lifting total holdings to 649,870 tokens.
The Bitcoin treasury sector has entered what Coinbase Research describes as a “player-versus-player” competitive phase, with 26 of 168 firms now trading below their crypto reserves.
