Metaplanet Embraces Bitcoin Strategy with New Share Structure

Metaplanet JP3481200008

Shareholders of Metaplanet have overwhelmingly approved a significant overhaul of the company's capital framework, designed to aggressively expand its Bitcoin holdings without diluting existing common stockholders. The Tokyo-listed shares responded positively, closing 4.16% higher at 451 Japanese Yen.

The approval at the extraordinary general meeting grants the company broad authority to reshape its balance sheet to facilitate further digital asset acquisitions. This strategic pivot was met with investor enthusiasm, reflected in the day's share price gain. Adding to this momentum is the company's recent foray into U.S. markets, having launched a sponsored Level I American Depositary Receipt (ADR) program on December 19. These ADRs, trading over-the-counter under the ticker MPJPY with Deutsche Bank as depositary, enhance accessibility for international investors.

Metaplanet’s approach solidifies its position as a dedicated Bitcoin proxy. By utilizing new preferred share classes for fundraising instead of issuing more common stock, the company aims to boost the key metric of "Bitcoin per share" for its current equity holders.

Details of the New Capital Instruments

The core of the approved changes involves the creation of two distinct classes of preferred shares, tailored to attract institutional capital:

• Class A "MARS" Preferred Shares: These offer a variable monthly dividend, targeting investors seeking flexible income streams.
• Class B "Mercury" Preferred Shares: Aimed at international institutions, this class provides a fixed annual dividend yield of 4.9%, paid quarterly. The structure includes a ten-year call option for the company at 130% of face value and a put option for investors should a public listing not occur within one year.

To implement this, the maximum number of issuable preferred shares per class was doubled to 555 million. Shareholders also sanctioned the reclassification of capital reserves into capital surplus, granting Metaplanet greater legal flexibility for future dividend distributions and share buybacks.

The company, which currently holds 30,823 BTC valued at approximately $2.75 billion, is already Asia's largest publicly-traded corporate Bitcoin holder. This new structure is intended to substantially grow that treasury while providing institutional investors with a familiar, yield-bearing instrument.

Comparative Context and Investor Demand

The strategy draws parallels to U.S. firm MicroStrategy's model but introduces a novel twist by embedding fixed-income components. This is specifically designed to appeal to more conservative institutional investors whose mandates may prohibit direct cryptocurrency investments or holdings in non-dividend-paying stocks.

Early indicators suggest strong demand. In November alone, roughly 21.25 billion JPY (approximately $135 million) was raised through the Mercury instrument. Despite the recent positive performance, which includes a gain of over 26% in the past month, Metaplanet's share price remains volatile and trades about 75% below its all-time high of 1,900 JPY recorded in June 2025.

Path Forward and Key Catalysts

Bolstered by clear shareholder support, Metaplanet is expected to swiftly advance the issuance of the Class B preferred shares to foreign investors. A critical factor will be whether demand for the 4.9%-yielding Mercury papers can sustain the volume observed late last year.

From a technical perspective, the stock has established a support level above its November lows of 338 JPY. The near-term trajectory for the share price is likely to be driven by two factors: the successful execution of the planned fundraising target of around $150 million for additional Bitcoin purchases, and the ongoing price movement of Bitcoin itself, which was trading near $89,775 at the time of the announcement.