Bitcoin News Today: Crypto Firms Shift to Preferred Stock to Buy Bitcoin, Avoid Debt and Dilution

Metaplanet, a cryptocurrency investment firm, has announced plans to issue $150 million in Class B Perpetual Preferred Stock to further expand its Bitcoin holdings. The move underscores a growing trend among institutional investors to secure funding through preferred equity structures, allowing them to accumulate Bitcoin without diluting common shareholders or taking on debt. The firm's strategy aligns with broader market dynamics, where firms are increasingly leveraging capital-efficient instruments to navigate a volatile crypto landscape.

The issuance follows a similar approach by Strategy, a major Bitcoin-focused company, which recently added 8,178 bitcoin-valued at $835.6 million-last week through the issuance of preferred shares. Strategy's total holdings now stand at 649,870 BTC, acquired for approximately $48.37 billion. Analysts note that such preferred share offerings have become a preferred financing tool in the crypto sector, offering flexibility and avoiding the regulatory complexities of traditional debt markets.

The decision by Metaplanet to prioritize Bitcoin accumulation reflects the cryptocurrency's growing acceptance as a strategic asset. HIVE Digital Tech, a leading Bitcoin miner, highlighted in its recent earnings call that the global average energy efficiency for Bitcoin mining remains at 17.5 joules per terahash, while its operations operate at 15 joules per terahash, underscoring the competitive advantage of institutional-grade infrastructure. HIVE's CEO emphasized that Bitcoin's role as an "energy-backed decentralized currency" continues to attract capital, particularly as firms seek to optimize returns in a low-yield environment.

The broader market context is shaped by recent turbulence. A high-stakes trader was liquidated on HyperLiquid over the weekend after a $168 million leveraged short bet on Bitcoin, XRP, and ZEC, losing $5.5 million amid a sudden price rebound. The incident highlights the risks of speculative trading, reinforcing the appeal of long-term, capital-preserving strategies like preferred stock issuance for institutional players.

Meanwhile, innovations in AI and blockchain technology are reshaping digital wealth management. JEXAI, a new platform integrating artificial intelligence with blockchain, has launched smart contracts designed to automate crypto asset allocation and optimize energy usage. The platform claims to reduce electricity costs by over 60% through dynamic energy optimization and AI-driven multi-currency configuration. Such advancements are expected to lower barriers for institutional adoption, further legitimizing Bitcoin as a core asset class.

Metaplanet's move also aligns with macroeconomic trends. With Bitcoin prices recently falling below $100,000-the lowest since June 2025-investors are seeking stable funding avenues to capitalize on undervalued positions. The firm's preferred stock offering provides a predictable capital structure, enabling it to scale Bitcoin purchases without exposing itself to the volatility of traditional financing markets.

The strategy is not without risks. Preferred shares typically carry higher yields than common stock, and investors must weigh the trade-offs between liquidity and long-term growth. However, for firms like Metaplanet, the ability to secure capital without ceding control to traditional lenders or equity dilution makes the approach attractive in a sector still grappling with regulatory uncertainty.

As the crypto market matures, the interplay between institutional financing, technological innovation, and market volatility will likely shape the next phase of Bitcoin's adoption. Metaplanet's $150 million issuance signals confidence in the asset's long-term value, even as it navigates a landscape marked by sharp price swings and evolving regulatory frameworks.