Metaplanet's Two-Tier Preferred Equity Strategy to Accelerate Bitcoin Accumulation

In an era where Bitcoin (BTC) is increasingly viewed as a strategic corporate asset, companies like Metaplanet are pioneering innovative capital-raising mechanisms to scale their Bitcoin treasuries. At the heart of Metaplanet's approach lies its Two-Tier Preferred Equity Strategy, a financial framework designed to minimize equity dilution while enabling aggressive Bitcoin accumulation-particularly during market downturns. This strategy leverages perpetual preferred shares, a hybrid instrument that offers fixed returns to investors while granting the company flexibility to deploy capital into Bitcoin without compromising governance or shareholder value.

The Mechanics of the Two-Tier Preferred Equity Strategy

Metaplanet's Two-Tier Preferred Equity Strategy is structured around the issuance of perpetual preferred shares with a capped dividend yield of up to 6%. These shares, which function as a hybrid between debt and equity, have no maturity date and do not require repayment of principal, allowing the company to raise capital indefinitely according to analysis. The proceeds are then allocated to Metaplanet's "555 Million Plan," a multi-year initiative targeting 100,000 BTC by 2026 and 210,000 BTC by 2027.

This approach is particularly effective in preserving the company's equity value. Unlike common stock issuance, which dilutes existing shareholders, perpetual preferred shares do not reduce the ownership stake of common equity holders. Instead, they provide a fixed return to preferred shareholders, ensuring that Bitcoin's appreciation directly benefits the company's enterprise value. For investors, this structure offers a stable income stream while aligning with Metaplanet's long-term vision of Bitcoin as a core asset.

Mitigating Dilution: A Strategic Advantage

One of the most compelling aspects of Metaplanet's strategy is its ability to reduce dilution compared to traditional equity financing. When companies raise capital by issuing common shares, existing shareholders see their ownership percentages shrink-a critical concern in volatile markets. Perpetual preferred shares circumvent this issue by avoiding the issuance of additional common stock.

This mechanism is not unique to Metaplanet. A notable parallel is MicroStrategy (MSTR), which has used perpetual preferred shares to fund Bitcoin purchases during market downturns. In 2025, MicroStrategy raised $835.6 million through preferred stock offerings, including the STRE and STRC series, to acquire 8,178 BTC. These shares provided a 10% annual dividend to investors while enabling the company to maintain its Bitcoin accumulation strategy without diluting common shareholders according to reports. By adopting a similar model, Metaplanet is positioning itself to replicate this success in the Japanese market.

Aggressive BTC Buying in Down Markets

The Two-Tier Preferred Equity Strategy shines brightest during bear markets, when Bitcoin's price corrections create attractive buying opportunities. Perpetual preferred shares allow Metaplanet to access fresh capital even when traditional equity markets are unattractive. For instance, during the 2022-2023 bear market, companies that relied on common stock issuance faced significant dilution and declining valuations. In contrast, perpetual preferred shares provided a non-dilutive alternative that enabled firms like MicroStrategy to continue purchasing Bitcoin at discounted prices.

Metaplanet's current Bitcoin holdings of 30,823 BTC represent just the beginning. By targeting 210,000 BTC by 2027-nearly 1% of all Bitcoin in circulation-the company is betting on a future where Bitcoin's scarcity and store-of-value properties drive long-term appreciation. This strategy mirrors the logic of MicroStrategy's Bitcoin treasury, which now owns 3.1% of all BTC. Both companies are leveraging perpetual preferred shares to scale their holdings while maintaining financial flexibility.

Implications for Investors

For investors, Metaplanet's Two-Tier Preferred Equity Strategy offers a dual benefit: capital appreciation from Bitcoin's growth and dividend income from preferred shares. The non-dilutive nature of the strategy ensures that as Bitcoin's price rises, the company's equity value grows proportionally, enhancing returns for common shareholders. Additionally, the fixed dividend yields (6% for Metaplanet, 10% for MicroStrategy) provide a buffer against market volatility.

However, risks remain. Perpetual preferred shares often come with higher interest rates to compensate for their indefinite duration, which could strain cash flow if Bitcoin's price stagnates. Investors must also weigh the company's leverage-MicroStrategy's $6.52 billion in debt as of February 2025-against its Bitcoin holdings to assess long-term sustainability.

Conclusion

Metaplanet's Two-Tier Preferred Equity Strategy exemplifies how innovative capital structures can align corporate and investor interests in the Bitcoin era. By issuing perpetual preferred shares, the company is not only minimizing dilution but also creating a self-reinforcing cycle of capital raising and Bitcoin accumulation. As the market continues to evolve, this approach could set a new benchmark for corporate Bitcoin strategies, particularly in regions like Japan, where regulatory clarity and institutional adoption are accelerating. For investors seeking exposure to Bitcoin's upside without the risks of direct ownership, Metaplanet's model offers a compelling alternative.