Metaplanet's Dividend-Backed Bitcoin Funding Strategy: A New Paradigm for Institutional Exposure

Institutional investors seeking exposure to Bitcoin in 2025 face a rapidly evolving landscape. While traditional avenues like ETFs and direct purchases remain dominant, a novel approach is gaining traction: dividend-backed Bitcoin funding strategies leveraging preferred shares. Metaplanet, a pioneer in this space, has redefined how institutions access and benefit from Bitcoin treasuries through its two-tier preferred equity structure. This article examines how Metaplanet's model is reshaping institutional investment, offering a hybrid solution that balances income generation, downside protection, and participation in Bitcoin's upside.

Metaplanet's Two-Tier Preferred Equity Structure

Metaplanet's strategy hinges on a dual-class preferred share framework: MARS Class A and MERCURY Class B. The MARS Class A shares feature adjustable monthly dividends, designed to stabilize returns amid Bitcoin's volatility. Meanwhile, MERCURY Class B shares offer a fixed 4.9% annual dividend and conversion options tied to Bitcoin's price appreciation, allowing investors to lock in income while retaining upside potential according to analysis.

This structure has proven highly effective. The initial MERCURY issuance raised $150 million from institutional investors, while a parallel $100 million Bitcoin-backed credit line enabled Metaplanet to expand its Bitcoin holdings and fund share repurchases according to reports. By November 2025, the company had drawn an additional $130 million from the same credit facility, bringing total borrowing to $230 million as reported. These moves have bolstered Metaplanet's Bitcoin treasury to 30,823 BTC, valued at $2.7 billion, providing robust collateral for further financing.

Preferred Shares: A Strategic Tool for Institutional Exposure

Metaplanet's approach reflects a broader trend among institutional investors. Companies like Strategy (formerly MicroStrategy) and The Blockchain Group have adopted similar models, using preferred shares and convertible debt to fund Bitcoin acquisitions according to market analysis. This strategy offers several advantages over traditional methods:

1. Income Generation: Preferred shares typically yield higher dividends than common equity, providing a steady cash flow. For example, MERCURY's 4.9% annual dividend outperforms most Bitcoin ETFs, which lack income-generating features according to data.
2. Downside Protection: Unlike direct Bitcoin purchases, preferred shares are less volatile. Metaplanet's MARS structure, with its adjustable dividends, further mitigates risk by adapting to market conditions according to research.
3. Leverage and Flexibility: Preferred shares allow companies to raise capital without diluting existing shareholders or increasing debt burdens according to financial analysis. This is critical in a market where Bitcoin's volatility necessitates financial agility.

In contrast, spot Bitcoin ETFs-which now manage $122 billion in assets under management (AUM) as of December 2025-offer liquidity and regulatory clarity but lack the income and upside potential of preferred shares according to market reports. Direct Bitcoin purchases, while offering full control, require complex custody solutions and expose investors to price swings as noted in analysis.

Regulatory Tailwinds and Market Legitimacy

The rise of preferred shares as an institutional tool is also supported by regulatory progress. The U.S. GENIUS Act (July 2025) and the EU's MiCA framework have created clearer guidelines for crypto investments, reducing compliance barriers according to industry analysis. These developments have spurred 86% of institutional investors to allocate capital to digital assets in 2025 according to market data, with $15 billion raised through Digital Asset Treasuries (DAT) strategies according to financial reports.

Metaplanet's success underscores the viability of this model. By combining Bitcoin's long-term value proposition with the stability of preferred dividends, the company has created a feedback loop: premium stock valuations enable further equity issuance, which funds additional Bitcoin purchases according to financial analysis. This dynamic mirrors MicroStrategy's strategy, which holds 607,770 BTC valued at $72 billion as of July 2025 according to market data.

Conclusion: A Hybrid Future for Institutional Bitcoin Exposure

Metaplanet's dividend-backed Bitcoin funding strategy exemplifies how preferred shares are bridging traditional finance and the digital asset ecosystem. For institutions, this model offers a compelling alternative to ETFs and direct purchases, combining income, downside protection, and participation in Bitcoin's growth. As regulatory clarity and market confidence continue to rise, preferred shares are likely to become a cornerstone of institutional Bitcoin strategies-reshaping how capital flows into the crypto space.