Metaplanet's Bitcoin-Backed Leverage Strategy: A Model for Amplified BTC Exposure?

The MERCURY Initiative: Structured Leverage for BTC Accumulation

Metaplanet's 2025 strategy hinges on the MERCURY initiative, a ¥22.7 billion (approximately $150 million) issuance of Class B perpetual preferred shares with a 4.9% fixed dividend and a ¥1,000 conversion price. This structure allows the company to raise capital without immediate dilution of common equity, a critical advantage in a market where Bitcoin's price swings can erode shareholder value. The company's thesis that Bitcoin is a superior store of value compared to traditional treasuries is reinforced by its financial structure.

By October 2025, Metaplanet had accumulated 30,823 BTC, with an average acquisition cost of ¥15.89 million per Bitcoin, making it the third-largest public Bitcoin holder globally. The company's Q3 2025 results revealed that its Bitcoin Income Generation strategy accounted for over 95% of total revenue, with a year-over-year BTC Yield of 459%. This metric, which measures the increase in Bitcoin exposure per share, underscores the compounding effect of leveraged accumulation.

Yield Generation: Beyond HODLing

Unlike traditional corporate Bitcoin strategies that rely solely on price appreciation, Metaplanet has diversified its yield-generation toolkit. In Q3 2025, the company secured a $100 million loan using 3% of its Bitcoin holdings as collateral, enabling expansion and share buybacks without liquidating reserves. This approach mirrors institutional practices in traditional finance, where assets are leveraged to generate liquidity while maintaining long-term strategic goals.

The company has also introduced perpetual preferred shares with up to 6% annual dividends, offering investors a stable income stream while financing further BTC accumulation. These instruments blend the characteristics of fixed-income products with the growth potential of Bitcoin, creating a hybrid model that appeals to both risk-averse and speculative investors.

Comparative Analysis: Metaplanet vs. Traditional Models

Metaplanet's strategy contrasts sharply with that of MicroStrategy, the pioneer of corporate Bitcoin adoption. While MicroStrategy has relied on debt financing-issuing convertible notes and equity to fund BTC purchases-Metaplanet has prioritized capital-efficient instruments like zero-interest bonds and put option sales according to industry analysis. This distinction is critical: MicroStrategy's debt-heavy model exposes it to interest rate risk and leverage volatility, whereas Metaplanet's preferred shares and collateralized loans offer more flexibility in managing balance sheet dynamics.

For instance, in 2025, Metaplanet reported a Bitcoin valuation loss of 124.402 million yen, highlighting the risks of price swings. However, its conservative loan-to-value ratios and diversified capital-raising methods mitigate these risks compared to MicroStrategy's concentrated debt exposure.

Risk Considerations: Volatility and Regulatory Uncertainty

Bitcoin's volatility remains a double-edged sword. While Metaplanet's Q3 2025 revenue surged 115.7% year-over-year, the same volatility could trigger margin calls or forced sales if Bitcoin's price drops sharply. Additionally, the U.S. BITCOIN Act of 2025 has created regulatory asymmetries, with Japanese firms like Metaplanet facing different compliance burdens than their U.S. counterparts.

The company's reliance on structured products also introduces counterparty risks. For example, the $100 million loan depends on the stability of the lender and the collateral valuation model, which could be challenged during a systemic crypto crisis.

Conclusion: A Scalable Model or a High-Stakes Gamble?

Metaplanet's Bitcoin-backed leverage strategy exemplifies the ingenuity of corporate treasurers in a low-yield environment. By combining perpetual preferred shares, collateralized loans, and yield-generating instruments, the company has created a framework that amplifies BTC exposure while managing dilution and liquidity constraints. However, the model's success hinges on Bitcoin's continued price resilience and regulatory clarity.

For investors, the key question is whether Metaplanet's approach can be replicated across industries-or if it represents a niche strategy tailored to Japan's unique economic conditions. As the company aims to acquire 210,000 BTC by 2027, its journey will serve as a litmus test for the viability of leveraged Bitcoin accumulation in corporate portfolios.