Metaplanet Offers Perpetual Preferred Shares to Build 210,000 BTC Treasury

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KEY FACTS: Metaplanet, a Tokyo-based investment firm, is leveraging perpetual preferred shares to fund its ambitious goal of amassing 210,000 BTC, valued at over $12.6 billion, transforming itself into a Bitcoin powerhouse. These hybrid securities, offering fixed dividends, no maturity date, and limited voting rights, allow the company to raise billions, starting with a ¥20 billion ($140 million) issuance in Q3 2025, without diluting shareholder control or incurring rigid debt repayments. This strategy, which balances the stability of bonds with the permanence of equity, shields Metaplanet from the volatility of common stock offerings and traditional loans, positioning it as a pioneer in corporate Bitcoin adoption.


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Source: Metaplanet


Metaplanet Offers Perpetual Preferred Shares to Build 210,000 BTC Treasury

Tokyo-based investment firm Metaplanet is wielding this hybrid security, part equity, part bond, and wholly unconventional, to fund an audacious quest to amass 210,000 BTC, a Bitcoin treasury worth over $12.6 billion at current prices. Metaplanet is embracing perpetual preferred shares over traditional equity or debt to raise billions without diluting shareholder control or shackling itself to rigid repayment schedules. This bold strategy is not only redefining the company’s future but also sparking a broader conversation about how perpetual preferred shares could reshape corporate financing in the crypto era.

Perpetual preferred shares sound like a relic from a bygone era, conjuring images of 19th-century railroad barons or early industrial conglomerates. Yet, in 2025, they are experiencing a renaissance, particularly for firms like Metaplanet chasing high-risk, high-reward assets like Bitcoin. Unlike common stock, which grants voting rights and variable dividends, or traditional bonds with fixed repayment deadlines, perpetual preferred shares occupy a unique niche. They offer fixed dividends, no maturity date, and limited or no voting rights, blending the stability of debt with the permanence of equity. The mechanics are as follows:

  • Fixed Dividends: Investors receive a steady payout, typically expressed as a percentage of the share’s par value (e.g., 6% annually on a $100 share). These can be “cumulative,” where missed payments pile up and must be cleared before common shareholders see a dime, or “non-cumulative,” where skips vanish.

  • No Maturity Date: The “perpetual” aspect means issuers like Metaplanet aren’t obligated to redeem shares, freeing up cash for long-term investments like Bitcoin. Many include a “call option,” allowing redemption at the issuer’s discretion, often when market conditions favor the company.

  • Priority in Liquidation: If the company folds, preferred shareholders stand ahead of common stockholders but behind bondholders, offering a middle-ground safety net.

  • Limited Voting Power: Unlike common shares, perpetual preferreds typically carry no voting rights, ensuring existing shareholders retain governance control.

Valuing these shares is trickier than it seems. The textbook formula—Price = Annual Dividend / Required Yield—suggests a $100 share paying $6 yearly at a 6% yield trades at par. But in practice, prices swing with interest rates, credit risk, and market liquidity. In today’s environment of rising global rates, these shares can be volatile, behaving like bonds when yields spike.

Why Perpetual Preferred Shares?

Metaplanet, once a modest player in Japan’s hotel and real estate sectors, has reinvented itself as a Bitcoin-centric investment firm under CEO Simon Gerovich, a former Goldman Sachs banker. Facing Japan’s economic stagnation and yen volatility, the company began accumulating Bitcoin in 2024 as a hedge against fiat debasement. To scale its treasury to 210,000 BTC, Metaplanet needed a financing tool that could raise billions without the pitfalls of traditional options. Perpetual preferred shares emerged as the answer, offering a trifecta of flexibility, cost control, and shareholder protection.

However, there are alternatives:

  • Common Equity: Issuing more stock would raise funds but dilute ownership, eroding the influence of existing shareholders. With Metaplanet’s stock up 300% year-to-date on Bitcoin hype, further dilution could spark a sell-off and undermine investor confidence.

  • Traditional Debt: Bonds or loans provide tax-deductible interest but demand fixed repayments, risking forced Bitcoin sales during market dips—a disaster for Metaplanet’s “HODL” strategy. Debt also burdens the balance sheet, potentially lowering credit ratings.

  • Convertible Notes: Popularized by U.S. Bitcoin giant MicroStrategy, these offer flexibility but often convert into common shares, diluting equity over time. They also carry complex accounting and market risks.

Perpetual preferred shares sidestep these issues. They inject capital without voting dilution, cap financing costs with fixed dividends, and avoid repayment deadlines that could disrupt Bitcoin accumulation. Credit agencies often grant them partial “equity credit” (50-100%), bolstering Metaplanet’s balance sheet without the full weight of debt. As Gerovich noted in a recent investor briefing, “Perpetual preferreds let us scale our Bitcoin treasury while keeping control firmly in our hands. It is disciplined growth, not reckless leverage.”

Metaplanet’s execution is as precise as it is ambitious. In Q3 2025, the firm issued ¥20 billion ($140 million) in perpetual preferred shares with a 6% dividend rate, using the proceeds to buy 300 BTC at an average price of $58,000. Plans for additional issuances aim to raise ¥100 billion ($700 million) annually, all funneled into Bitcoin. The fixed dividend structure ensures predictable costs, even in Japan’s near-zero interest rate environment, while the lack of maturity aligns with Bitcoin’s long-term appreciation potential.

If Bitcoin’s historical 100% annualized returns hold, Metaplanet’s treasury could cover dividends through strategic sales or lending within five years, all while preserving its core holdings. The shares’ priority in liquidation offers investors a buffer, making them attractive to conservative funds seeking crypto exposure without direct ownership.

Preferred Shares vs. the Alternatives: A Strategic Showdown

Why not just issue more common equity, the lifeblood of most growth companies? Or pile on debt, the go-to for leveraged buyouts? Metaplanet weighed these options and found them wanting. To illustrate, consider the trade-offs in a side-by-side comparison:

FeatureCommon EquityPerpetual Preferred SharesTraditional Debt/Bonds
Maturity/RedemptionIndefinite (no maturity)Indefinite (no maturity)Finite (e.g., 5-10 years)
Priority in LiquidationLowest (after creditors and preferred)Middle (after debt, before common)Highest (first claim)
PaymentsVariable/discretionary dividendsFixed dividends (non-guaranteed)Fixed interest (contractual)
Voting RightsFull voting powerNone or limitedNone
Repayment ObligationNoNo (unless callable)Yes, principal at maturity
Tax Treatment (Issuer)Dividends not deductibleDividends not deductibleInterest deductible
Interest Rate SensitivityTied to earnings/growthModerate (bond-like)High (very sensitive)

A New Frontier: Perpetual Preferred Shares in the Crypto Age

Metaplanet’s strategy could set a precedent for global corporations eyeing digital assets. While U.S. firms like MicroStrategy rely on convertible notes and equity, perpetual preferred shares offer a compelling alternative, especially in markets with thin equity pools or high debt costs. Their hybrid nature appeals to investors who want bond-like stability with equity-like upside, minus the governance strings.

Perpetual preferred shares could become a go-to tool for companies diversifying into volatile assets like cryptocurrencies, rare earths, or green tech. They offer a way to raise capital without the existential risks of over-leveraging or over-diluting, aligning with the long horizons of transformative investments.

Metaplanet can redeem shares when it suits them, but investors cannot force repayment. This tilts the risk-reward balance toward the issuer, potentially chilling demand. And while preferred shares rank above common equity in liquidation, they are still subordinate to debt, offering less protection than bonds in a worst-case scenario.

As of October 3, 2025, Metaplanet’s perpetual preferred share strategy is paying dividends, literally and figuratively. The company’s stock trades at a premium, fueled by Bitcoin’s rally past $60,000 and investor enthusiasm for its innovative financing. With plans to scale issuances, Metaplanet is on track to redefine corporate treasuries, proving that perpetual preferred shares can bridge the gap between traditional finance and the crypto frontier.

Whatever the outcome, Metaplanet is writing a bold chapter in the annals of corporate finance, using a century-old tool to chase a 21st-century dream. Metaplanet's experiment could reshape how firms worldwide approach digital assets.

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