Bitcoin News Today: Metaplanet Seeks 3.7B Yen to Expand Bitcoin Holdings via Preferred Shares

Metaplanet, a Tokyo-listed investment firm with a significant Bitcoin (BTC) treasury, has filed a shelf registration for the issuance of up to 555 billion yen (approximately $3.7 billion) in perpetual preferred shares. The proposed shares are backed by the firm’s BTC holdings and will be issued in two classes—Class A (non-convertible) and Class B (convertible)—each with a maximum value of 277.5 billion yen. The shares will carry a fixed dividend rate of up to 6% and will take precedence over common stockholders in terms of dividend distribution [1].

The company has stated that the capital raised will be used to further expand its Bitcoin holdings, aiming to accumulate a total of 210,000 BTC by the end of 2027. If successful, this would represent 1% of the total existing Bitcoin supply globally. The firm currently holds 17,132 BTC, valued at around $1.95 billion, and has already increased its annual target for 2026 from 21,000 to 100,000 BTC, reflecting a nearly five-fold increase from its prior plan. The company added 780 BTC to its treasury on July 28, highlighting the continuation of its aggressive accumulation strategy [1].

The issuance of preferred shares marks a strategic shift from Metaplanet’s previous reliance on common shares for fundraising. The firm explains that preferred shares help minimize dilution of common stockholders while offering greater flexibility in capital policy and financing options. Preferred shares, unlike common shares, typically lack voting rights and will be distributed before common shareholders in the event of liquidation [1]. The proposed move requires an increase in authorized share capital, from 1.61 billion to 2.723 billion shares, to accommodate the new share classes.

The issuance is subject to shareholder approval, with an Extraordinary General Meeting (EGM) scheduled for September 1 to vote on the proposal. However, the stock has experienced volatility in recent weeks, declining 7.65% following the announcement. Over the past month, shares have fallen by 33%, although they remain up more than 115% over the last six months. The market’s reaction remains mixed, with some investors expressing optimism about the firm’s Bitcoin-focused strategy and others raising concerns about potential shareholder dilution and the timing of the offering [1].

The proposed capital raise reflects a broader trend among institutional investors to leverage equity structures to fund Bitcoin acquisitions. However, the success of Metaplanet’s strategy will depend on the outcome of the shareholder vote and the market’s reception of the new shares. The company has emphasized that the shelf registration is a preparatory step and that the actual issuance will depend on favorable market conditions and board approval [1].

Source: [1] Metaplanet Files to Raise $3.7B for Its Bitcoin Treasury Expansion (https://moneycheck.com/metaplanet-files-to-raise-3-7b-for-its-bitcoin-treasury-expansion/)