Metaplanet Plans $3.7 Billion Bitcoin Expansion Through Perpetual Preferred Shares

• Metaplanet plans to raise $3.7 billion through perpetual preferred shares to buy more Bitcoin and reach its goal of 210,000 BTC by 2027. 

• The company recently bought 780 Bitcoin and now holds 17,132 BTC worth $1.73 billion. 

• The stock dropped 7.65% after the announcement but gained 115% over six months.

Japanese investment firm Metaplanet has announced plans to raise $3.7 billion through perpetual preferred stock issuance to accelerate its Bitcoin acquisition strategy. The company will seek shareholder approval for this massive funding initiative at an upcoming Extraordinary General Meeting (EGM).

CEO Simon Gerovich revealed the proposal on social media, outlining plans to raise ¥555 billion to strengthen the company’s Bitcoin treasury. The funding mechanism involves two classes of perpetual preferred stock: Class A (non-convertible) and Class B (convertible).

This announcement follows Metaplanet’s recent acquisition of 780 Bitcoin worth $92.5 million. The purchase brought the company’s total Bitcoin holdings to 17,132 BTC, valued at approximately $1.73 billion.

Ambitious Bitcoin Accumulation Target

Metaplanet has set an aggressive goal to accumulate 210,000 Bitcoin by 2027. This target positions the company among the most ambitious corporate Bitcoin adopters globally. The proposed funding round represents a significant step toward achieving this objective.

The company’s Bitcoin strategy has already elevated its position among public companies holding cryptocurrency. Metaplanet’s current holdings now exceed those of established players like Tesla and Galaxy Digital, marking a notable shift in the corporate Bitcoin landscape.

Despite the funding announcement, Metaplanet’s stock price declined 7.65% to 1,063 yen. The shares have dropped 10% over five days and 33% over the past month. However, the stock has gained 115% over the last six months, reflecting strong investor interest in the company’s Bitcoin-focused strategy.

Strategic Benefits of Perpetual Preferred Shares

The perpetual preferred share structure offers several advantages for Metaplanet’s Bitcoin accumulation plan. These securities provide fixed dividend payments and priority over common stock without a maturity date, creating a permanent capital source.

The approach minimizes dilution concerns for existing common shareholders since preferred shares typically lack voting rights. This structure allows Metaplanet to access capital while preserving current shareholder control.

Perpetual preferred shares also attract investors seeking stable returns and fixed income opportunities. This broadens Metaplanet’s potential investor base beyond traditional equity investors, tapping into different capital pools.

The funding mechanism enables sustained Bitcoin purchases without relying on volatile operational cash flows. This stability supports consistent accumulation regardless of short-term market conditions or business performance fluctuations.