The Strategic Advantage of Metaplanet's Entry into Japan's Perpetual Preferred Market

Japan's financial markets are undergoing a quiet revolution. In a country where traditional fixed-income instruments offer near-zero yields, a new class of crypto-linked perpetual preferred shares is emerging as a disruptive force. At the forefront of this shift is Metaplanet, a Bitcoin-focused financial services firm leveraging capital structure innovation and first-mover positioning to redefine Japan's digital credit landscape. By introducing instruments like Mercury and Mars, Metaplanet is not only capitalizing on the low-yield environment but also pioneering a blueprint for institutional Bitcoin adoption in a market primed for regulatory evolution.

Capital Structure Innovation: Bridging Bitcoin and Fixed Income

Metaplanet's entry into Japan's perpetual preferred market is marked by a bold reimagining of capital structure. Its Mercury offering, a convertible perpetual preferred share with a 4.9% annual dividend in yen, directly addresses the limitations of traditional Japanese bank deposits, which yield less than 0.1%. This instrument includes a conversion feature at a 166.7% premium to the stock price, blending income generation with equity upside-a structure absent in conventional Japanese fixed-income products. Meanwhile, Mars, modeled after Strategy's STRC, introduces adjustable monthly dividends tied to Metaplanet's stock price, offering investors flexibility in a volatile market.

These innovations are underpinned by a moving strike warrant (MSW) mechanism, distinct from the U.S.'s at-the-market approach and tailored to Japan's regulatory framework. By aligning with local compliance standards, Metaplanet ensures its instruments are both attractive to yield-seeking investors and compliant with evolving crypto regulations. This structural creativity positions the firm to tap into Japan's ¥7.6 trillion in household cash and deposits, which are currently earning negligible returns.

Regulatory Tailwinds: A Framework for Growth

Japan's regulatory environment is rapidly adapting to accommodate crypto-linked financial instruments. While crypto assets are currently classified under the Payment Services Act (PSA), the Financial Services Agency (FSA) is actively exploring reclassification under the Financial Instruments and Exchange Act (FIEA), which would align them with traditional securities. This shift, expected to be finalized by the 2026 parliamentary session, would enable crypto assets to be included in investment trusts and broaden access for retail and institutional investors.

Complementing this is a proposed 20% flat tax on digital asset gains, mirroring the treatment of stocks and bonds. Such reforms reduce the regulatory friction for crypto-linked products like Metaplanet's perpetual preferred shares, incentivizing adoption among conservative Japanese investors. The FSA's Web3 Project Team, established in 2022, further underscores Japan's ambition to lead the global Web3 ecosystem. These developments create a fertile ground for Metaplanet's offerings, as they align with the country's strategic push to modernize its financial infrastructure.

First-Mover Positioning: Capturing a Nascent Market

Metaplanet's strategic advantage is amplified by its first-mover positioning in a market with minimal competition. As of late 2025, Japan has only five listed perpetual preferred instruments, and Metaplanet's planned Mercury and Mars offerings will make it the sixth and seventh issuer. This head start is further solidified by Strategy's decision to delay its Japanese expansion for at least 12 months, granting Metaplanet a critical window to consolidate its market presence.

The firm's capital structure also reflects its aggressive growth strategy. With a $500 million credit facility and a recent raise through Class B perpetual preferred shares, Metaplanet is scaling its Bitcoin treasury while maintaining financial flexibility. Despite holding 30,823 BTC (valued at $2.7 billion) and facing $636 million in unrealized losses due to Bitcoin's price decline, the company remains committed to Bitcoin-backed financing. This resilience underscores its long-term vision: to transform Japan's fixed-income market into a Bitcoin accumulation engine.

Growth Projections and Market Potential

Japan's perpetual preferred market, though small, is projected to expand significantly as crypto-linked instruments gain traction. Metaplanet's roadmap includes listing Mercury by early 2026 and scaling its Bitcoin treasury to 210,000 BTC by 2027. The firm's focus on balance sheet strength over rapid expansion positions it to weather market volatility while building a durable capital structure.

Industry analysts highlight the potential for these instruments to attract institutional capital, particularly from pension funds and asset managers seeking higher yields in a low-interest-rate environment. With Japan's household savings pool and a regulatory framework increasingly favorable to crypto innovation, Metaplanet's offerings could catalyze a broader shift in capital allocation strategies.

Conclusion: A Blueprint for Institutional Bitcoin Adoption

Metaplanet's entry into Japan's perpetual preferred market exemplifies the intersection of capital structure innovation and strategic timing. By designing instruments that address the limitations of traditional fixed income, aligning with regulatory tailwinds, and securing a first-mover advantage, the firm is not only capitalizing on a niche opportunity but also laying the groundwork for institutional Bitcoin adoption in Asia. As Japan's financial ecosystem evolves, Metaplanet's approach may well serve as a model for other markets seeking to integrate crypto-linked instruments into their capital markets.