Bitcoin News Today: Metaplanet Bets $135M on Bitcoin's Long-Term Promise Amid Market Volatility

Metaplanet, a Tokyo-listed Bitcoin treasury company, has announced a $135 million perpetual preferred share offering to fund further Bitcoin acquisitions, signaling confidence in its long-term strategy despite a volatile market. The Class B preferred shares, branded "MERCURY," carry a 4.9% fixed annual dividend and a ¥1,000 conversion price, aiming to minimize dilution while expanding the firm's Bitcoin holdings according to company reports. The issuance of 23.61 million shares, priced at 900 yen each, is set to close on December 29, pending shareholder approval at an extraordinary general meeting on December 22 as per company filings. Proceeds will be used to purchase Bitcoin, aligning with Metaplanet's strategy of accumulating the asset since 2024 according to analysis.

The offering structure includes quarterly dividend payments, with the initial period ending December 31 paying ¥0.40 ($0.003) per share. The conversion feature allows holders to convert shares into common stock at ¥1,000, a price significantly above Metaplanet's November 19 closing price of ¥375 ($2.40), limiting immediate dilution risks according to market analysis. Simon Gerovich, the company's representative director, emphasized that the move represents a "new step in scaling" their Bitcoin treasury strategy while maintaining balance-sheet stability according to company statements.

The financing comes amid broader challenges for Bitcoin treasury companies, including compressed valuations and potential index exclusions. JPMorgan analysts warned that MSCI's proposed removal of companies with over 50% digital-asset holdings could trigger up to $2.8 billion in passive outflows for firms like MicroStrategy (MSTR), which holds the largest corporate Bitcoin stack according to financial reports. Meanwhile, Strategy's stock has fallen over 60% from its November 2024 highs, reflecting a sector-wide premium collapse as 26 of 168 firms now trade below their crypto reserves according to market data.

Despite these headwinds, Metaplanet's management remains bullish. Founder Michael Saylor recently asserted that Strategy can "withstand an 80%–90% drawdown" due to its low leverage ratio of 1.15 times and long-term debt maturity of 4.5 years according to company statements. Saylor compared Bitcoin's five-year performance-averaging 50% annual returns-to traditional assets like the S&P 500 and gold, calling it "digital capital" for long-term investors according to financial commentary.

The broader Bitcoin mining and treasury sector has shown mixed results. While companies like HIVE Digital and TeraWulf reported revenue spikes, others face regulatory hurdles, as seen with Greenidge Generation's recent air permit renewal according to industry reports. Metaplanet's preferred equity structure, however, is designed to attract institutional investors seeking yield with Bitcoin exposure, a strategy that could stabilize its capital stack amid market uncertainty according to market analysis.

With Bitcoin trading near $87,000-a 22% drop from its October peak-Metaplanet's aggressive accumulation strategy contrasts with industry caution. The firm currently holds 30,823 BTC, ranking fourth globally among corporate holders according to market data. By limiting preferred issuance to 25% of Bitcoin's net asset value, Metaplanet aims to avoid excessive leverage while building a performance track record for future listings according to financial analysis.