Metaplanet to Offer Dividend-Paying Preferred Shares to Buy More Bitcoin, Echoing Strategy

Core Viewpoint - Metaplanet (MTPLF), Japan's largest corporate Bitcoin holder, is restructuring its capital by issuing preferred shares to raise funds and minimize dilution from common share issuances [1][4]. Group 1: Capital Structure Changes - The company plans to offer two types of preferred shares, "Mars" and "Mercury," to institutional investors as a new funding source while providing regular dividend payments [1][3]. - The issuance of 23.6 million Mercury shares aims to raise ¥21.2 billion ($135 million), with shares priced at ¥1900 ($5.71) each [3]. Group 2: Dividend Structure - Mars will have a fluctuating dividend rate designed to reduce volatility in secondary markets and will not have conversion rights into common equity, but it will be senior to common shares and Mercury [2]. - Mercury will provide a fixed annual dividend of 4.9% on a base amount of ¥1,000 ($6.35), with an initial distribution of ¥0.40 yen ($0.0025) for the current quarter [2]. Group 3: Market Position and Performance - Metaplanet is the third Bitcoin treasury firm to issue preferred shares, following Strategy and Strive, which have historically issued common shares to increase Bitcoin holdings [3]. - The company's market cap is currently slightly above its Bitcoin holdings, with $30,823 Bitcoin valued at $2.67 billion and a market cap of approximately $2.81 billion [5].