Bitcoin News Today: Metaplanet Prefs Offer 7–12% Yields as Bitcoin Backs Japan’s Fixed Income Innovation

Metaplanet reported a dramatic 333% quarter-over-quarter increase in total assets during the second quarter of the year, reaching ¥238.2 billion (approximately $1.61 billion), while net assets surged 299% to ¥201 billion ($1.36 billion). This unprecedented growth has positioned the firm to launch a novel financial instrument in Japan’s historically low-yield market: Bitcoin-backed preferred shares, known as “Metaplanet Prefs.” The company aims to leverage its expanding asset base and profitability to offer high-yield products that address the capital-starved fixed income needs of Japanese institutional investors [1].

Japan’s fixed income market remains one of the most unattractive for yield-seeking investors, with the 10-year Japanese Government Bond (JGB) yielding only around 1%. Corporate bonds rarely exceed 2%, and household financial assets amount to $14.9 trillion, of which only $2.7 billion is allocated to preferred shares [1]. The lack of income-generating options has left pension funds, insurers, and banks with minimal returns for years. Metaplanet’s new product, which offers yields in the 7–12% range, could fill this void by combining the familiarity of preferred equity with the upside potential and collateral backing of Bitcoin [1].

Preferred shares sit between debt and common stock in the capital structure, offering predictable dividends, higher liquidation claims, and no voting rights. Metaplanet’s Bitcoin-backed variant is designed to avoid refinancing risks associated with traditional debt and to diversify its capital base beyond common equity. The firm’s strategy mirrors that of Strategy (formerly MicroStrategy), which successfully used multi-class preferred shares to grow its Bitcoin holdings to over 500,000 BTC without significant dilution [1].

Metaplanet’s Q2 earnings reflect its financial strength: revenue reached ¥1.239 billion ($8.4 million), up 41% from the previous quarter, while gross profit hit ¥816 million ($5.5 million). The company moved from a net loss of ¥5 billion to a net income of ¥11.1 billion ($75.1 million), and ordinary profit surged from a loss of ¥6.9 billion to ¥17.4 billion ($117.8 million) [1]. These results reinforce the company’s credibility and ability to execute its capital-raising strategy.

The firm plans to issue multiple classes of preferred shares tailored to different investor profiles, including short-duration, medium-duration, senior fixed dividend, convertible, and high-yield options. This approach allows for the creation of a Bitcoin-backed yield curve in Japan, a market that has lacked such structured instruments. The strategy not only provides yield but also legitimizes Bitcoin as collateral in fixed income markets, a shift that could accelerate adoption globally [1].

Metaplanet’s initiative highlights the potential for Bitcoin to integrate into traditional capital structures, particularly in markets like Japan where regulatory compliance and investor familiarity are key. If successful, this model could set a precedent for corporate Bitcoin strategies worldwide and mark the beginning of a broader “Bitcoin fixed income era.” The firm’s growth and strategic product innovation demonstrate how emerging financial instruments can address long-standing market inefficiencies in a compliant and scalable manner [1].

Source: [1] Metaplanet Triples Assets in Q2 With Bitcoin-Backed Preferred Shares for Japan’s Yield-Starved Market (https://bitcoinmagazine.com/bitcoin-for-corporations/metaplanet-bitcoin-backed-preferred-shares)