Bitcoin Fever! Metaplanet Raises $135M With New Shares to Stack More BTC
Metaplanet Plans $135 Million Capital Raise Through New Preferred Shares to Boost Bitcoin Holdings
Metaplanet, a publicly traded company renowned for its substantial Bitcoin treasury, announced plans to raise approximately $135 million through the issuance of new Class B perpetual preferred shares, signaling a strategic push to expand its cryptocurrency holdings. The company intends to issue 23.6 million Class B shares at a price of 900 yen ($5.71) each, totaling 21.2 billion yen in proceeds, according to filings submitted to the Tokyo Stock Exchange.
The offering, which is designed to attract international investors, will be executed through a third-party allotment, pending shareholder approval at an extraordinary meeting scheduled for December 22, 2025. The newly issued Class B shares carry a fixed annual dividend of 4.9% based on a $6.34 notional amount, translating to $0.078 per quarter once the payments commence.
Convertible and Structured for Strategic Flexibility
Holders of the new preferred shares will have the option to convert them into common stock at a $6.34 conversion price. Additionally, the company retains a market-price call option, exercisable if Metaplanet’s stock trades above 130% of the liquidation preference for 20 consecutive trading days. While these shares do not confer voting rights, they include redemption rights in specific circumstances, offering investors a structured balance of risk and reward.
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| Source: NewsCMC |
The capital raise coincides with broader restructuring initiatives within Metaplanet’s financing framework. The company plans to cancel its 20th through 22nd stock acquisition rights and issue new 23rd and 24th series rights to Cayman Islands-based investment fund Evo Fund, contingent on regulatory approval.
Metaplanet CEO Simon Gerovich highlighted the strategic importance of the new Class B perpetual preferred equity program, dubbed Mercury, in a recent post on X. “The 4.9% fixed dividend and 1,000 yen conversion price represent a new step in scaling Metaplanet’s Bitcoin treasury strategy,” he wrote. The initiative aims to provide additional capital to increase Bitcoin reserves while minimizing dilution from new common share issuances.
Market Response and Stock Performance
Following the announcement, Metaplanet shares ended trading Thursday up 3.20%, adding 12 points to the stock price. Nevertheless, the company’s stock has experienced significant volatility over the past six months, falling over 60%, according to Google Finance data. Despite this downturn, Metaplanet ranks as the fourth-largest publicly traded company globally in Bitcoin holdings, with 30,823 Bitcoin valued at approximately $2.82 billion, as tracked by BitcoinTreasuries.NET.
The firm purchased its Bitcoin at an average price of $108,036 per coin and currently faces an unrealized loss of 15.17%. The value of its holdings has declined sharply from October highs amid broader market weakness across cryptocurrency markets in November.
Preferred Shares as a Growing Trend Among Bitcoin Treasury Firms
Metaplanet is now the third major Bitcoin treasury-focused company to offer preferred shares, following similar strategies by asset management firms such as Strategy and Strive. The use of preferred shares allows these companies to raise capital efficiently while limiting the dilution of common stock. This approach provides a more predictable funding mechanism for expanding cryptocurrency holdings even as market caps fluctuate and investor sentiment remains cautious.
Strategy, for instance, has issued $7.7 billion worth of preferred shares so far this year. However, the firm’s stock has declined by 39%, trading recently around $176, demonstrating the persistent volatility in Bitcoin-linked equities. Metaplanet’s adoption of a preferred share financing strategy reflects a broader trend among companies seeking to balance cryptocurrency accumulation with the challenges of volatile equity markets.
Investor Implications and Risk Considerations
The Mercury program presents both opportunities and risks for investors. On one hand, the fixed dividend provides a stable yield in an otherwise highly volatile cryptocurrency market. Investors also gain exposure to Metaplanet’s Bitcoin holdings through a structured equity instrument without immediate exposure to daily price fluctuations. On the other hand, the non-voting nature of the shares and dependency on the company’s Bitcoin strategy mean that investors must carefully evaluate market conditions and Bitcoin price trends before committing.
The ability to convert preferred shares into common stock offers a pathway for potential upside if Metaplanet’s equity value rises in tandem with Bitcoin or market recovery. Conversely, if the stock remains below the conversion threshold, preferred shareholders will primarily benefit from dividend payments.
Strategic Positioning and Broader Market Context
Metaplanet’s capital-raising move comes amid a wave of innovation in the Bitcoin treasury sector, as publicly traded firms increasingly seek creative financing solutions to grow cryptocurrency holdings. Companies like MicroStrategy and Strategy have demonstrated the potential for preferred shares to provide institutional-grade capital support while maintaining cryptocurrency accumulation strategies.
By implementing a structured preferred share program, Metaplanet aims to strengthen its balance sheet, preserve shareholder value, and position itself for long-term growth in digital asset holdings. This approach is particularly relevant as institutional investors continue to explore regulated exposure to Bitcoin while avoiding excessive equity dilution.
Long-Term Outlook and Market Relevance
The Mercury initiative could have broader implications for the cryptocurrency investment ecosystem. If successful, it may encourage other publicly traded companies to adopt preferred share financing as a tool to manage Bitcoin treasuries efficiently. This development also underscores a growing trend toward hybrid financing models, combining traditional equity instruments with digital asset accumulation strategies.
Metaplanet’s approach demonstrates the increasing sophistication of public companies managing cryptocurrency portfolios. By raising capital through perpetual preferred shares, the firm gains financial flexibility, supports long-term Bitcoin acquisition, and offers investors a clear framework for participation in its digital asset strategy.
While the short-term market performance of Metaplanet shares remains tied to Bitcoin price fluctuations, the preferred share program may mitigate volatility for investors seeking consistent returns through dividends. The initiative further highlights the growing convergence between traditional financial markets and cryptocurrency investment strategies.
Conclusion
Metaplanet’s $135 million capital raise through the Mercury Class B perpetual preferred shares represents a significant strategic step in expanding its Bitcoin holdings. By offering a structured dividend, conversion rights, and targeted issuance to overseas investors, the company demonstrates a forward-thinking approach to balancing growth and shareholder protection.
As Bitcoin continues to experience market volatility, Metaplanet’s approach may serve as a blueprint for other publicly traded companies seeking to grow cryptocurrency treasuries while managing equity dilution and investor expectations. Analysts and investors will be closely monitoring the program’s approval, market reception, and its impact on both Metaplanet’s stock and overall Bitcoin exposure.
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