Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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Japanese Bitcoin investment firm Metaplanet filed a shelf registration on August 1 to raise up to 555 billion yen ($3.6 billion) through perpetual preferred stock issuance.
This marks its most ambitious financing plan to support the acquisition of 210,000 Bitcoin by 2027.
The company simultaneously proposed amendments to increase authorized shares to 2.72 billion and establish two classes of perpetual preferred shares with different risk profiles and conversion features.
Two-Tier Preferred Structure Targets Different Investor Risk Appetites
The filing comes as Metaplanet has aggressively expanded its Bitcoin holdings to 17,132 BTC worth approximately $2 billion, achieving a year-to-date BTC Yield of 430.2% through July 18.
Trading volume in Metaplanet stock reached 1.86 trillion yen ($12.65 billion) in June, nearly doubling from May’s 997.6 billion yen as investors embraced the company’s digital asset strategy.
The proposed Class A Perpetual Preferred Shares would function similarly to corporate bonds with dividend rates up to 6% and priority in liquidation, while Class B shares offer conversion rights to common stock through put options.
Neither class carries voting rights, and the company emphasized that no specific issuance plans exist pending shareholder approval and regulatory discussions.
Metaplanet’s extraordinary general meeting scheduled for September 1 will vote on the proposed amendments, though the company cautioned that listing approval for preferred shares remains uncertain.
The shelf registration spans two years from August 9, 2025, through August 8, 2027, with proceeds designated exclusively for Bitcoin acquisition.
Aggressive Accumulation Strategy Quadruples Holdings in Four Months
Metaplanet’s Bitcoin treasury operations have accelerated dramatically since becoming an official business line in December 2024.
The company expanded holdings from under 4,000 BTC in March to over 17,000 by July, funding purchases through multiple bond redemptions and stock acquisition rights exercises totaling billions of yen.
Recent acquisitions include 780 Bitcoin on July 28 for $92.93 million at an average price of $119,136 per coin, and 2,205 BTC on July 7 valued at $238.7 million.
The company’s fully diluted shares outstanding now exceed 866 million following extensive dilution from rights exercises.
CEO Simon Gerovich has provided transparent proof-of-reserves for Bitcoin holdings, contrasting with MicroStrategy’s approach.
The average purchase price across all holdings sits at approximately $100,504 per Bitcoin, rising from $87,992 at March-end as acquisition appetite increased.
Metaplanet tracks custom metrics, including BTC Yield, to measure Bitcoin accumulation relative to share dilution.
The Q2 2025 BTC Yield reached 129.4%, while Q4 2024 achieved 309.8% as the strategy gained momentum.
Market Dominance Grows Amid Treasury Strategy Skepticism
Metaplanet’s trading volume surpassed established giants Toyota Motor and Sony Group on Tokyo’s prime market in June, ranking among the top five positions since November 2024.
The company’s shares have surged over 345% year-to-date as investors sought Bitcoin exposure amid Japan’s bond market instability.
Japanese 30-year government bond prices dropped 45% since 2019, driving institutional interest toward Metaplanet as a transparent Bitcoin proxy.
Analysts noted the company’s market net asset value remains reasonable despite the rally, with potential for continued growth.
However, industry skepticism about corporate Bitcoin treasury sustainability has emerged.
VanEck’s Matthew Sigel warned that at-the-market share issuance programs could become dilutive if stock prices approach Bitcoin’s net asset value.
Similarly, Glassnode analyst James Check also questioned the longevity of treasury strategies, arguing many firms have “shorter lifespans than expected.”
Making it worse, legal challenges have also surfaced against the Bitcoin acquisition strategy.
New York firm Pomerantz LLP filed a class action lawsuit against MicroStrategy, accusing the company of misleading investors about Bitcoin investment strategy profitability and risks.
Despite criticism, Metaplanet’s ambitious 210,000 BTC target by 2027 would require multiplying current holdings by thirteen times.
While substantial, the goal represents less than half of MicroStrategy’s current 597,325 BTC position.
The proposed preferred stock structure addresses financing needs without further common share dilution.
Class A shares provide fixed-income characteristics for conservative investors, while Class B shares offer equity upside through conversion rights, potentially appealing to different investor segments seeking Bitcoin exposure through public markets.
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