Metaplanet Introduces Preferred Shares: A Bold Move for Bitcoin Expansion
Metaplanet, Japan’s largest corporate Bitcoin holder, has unveiled an innovative strategy to expand its Bitcoin treasury while minimizing common share dilution. On Thursday, the company announced the issuance of new preferred shares named “Mars” and “Mercury” to attract investors and strengthen its capital structure.
Key Features of the “Mars” and “Mercury” Shares
The “Mars” preferred shares come with a fluctuating dividend rate designed to reduce volatility in secondary markets. Unlike convertible securities, “Mars” shares are non-convertible but hold seniority over both common shares and “Mercury” preferred shares.
On the other hand, “Mercury” offers investors a fixed annual dividend of 4.9% on a base amount of ¥1,000 ($6.35). Quarterly payments provide steady returns, and shares are convertible into common equity only if their value surpasses the ¥1,000 mark—nearly three times their current trading price.
Initial Offering Raises $135 Million for Bitcoin Investments
In its initial offering, Metaplanet issued 23.6 million “Mercury” shares, priced at ¥1900 ($5.71) each. This move raised ¥21.2 billion ($135 million), which the company plans to reinvest into expanding its Bitcoin holdings. Investors will benefit from both regular dividend payments and the potential value appreciation of the company’s Bitcoin-heavy portfolio.
Echoing the Strategy of Bitcoin Giants
By issuing preferred shares, Metaplanet follows in the footsteps of firms like Strategy and Strive, which pioneered similar financial instruments to grow their Bitcoin reserves. However, this approach comes with challenges; firms like Strategy have seen significant stock price declines due to fluctuations in Bitcoin’s value and market cap.
Market Reaction and Future Outlook
Metaplanet’s bold move has garnered positive attention, with its share price rising 3% to ¥387 ($2.46) following the announcement. While the company’s stock value has halved in the past six months, its year-to-date performance remains up by 11%. With a total of $2.67 billion in Bitcoin on its balance sheet, Metaplanet positions itself as a leader in innovative finance and cryptocurrency strategy.
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