Saylor Says Strategy Will Not Issue Preferred Equity in Japan, Giving Metaplanet a 12 Month Head Start

Core Insights - The main question regarding Strategy (MSTR) is whether it will list a perpetual preferred equity or "digital credit" in Japan, to which executive chairman Michael Saylor responded that it will not happen in the next twelve months [1] Group 1: Metaplanet's Digital Credit Instruments - Metaplanet is planning to introduce its own digital credit instruments, "Mercury" and "Mars," into Japan's perpetual preferred market, which currently has only five listed equities [2] - Mercury, described as Metaplanet's version of Strategy's STRK, offers a yield of 4.9% in yen and includes convertibility, significantly higher than Japanese bank deposits and money market funds [2] - Mars is designed to mirror Strategy's STRC, a short duration high yield credit product, and comes as Strategy has expanded its own perpetual preferred program [3] Group 2: Market Mechanisms and Strategies - Japan does not permit at-the-market share sales (ATM) like those used by Strategy, leading Metaplanet to utilize a moving strike warrant (MSW) for its perpetual preferred offerings [4] - Saylor advocates for broad participation in issuing digital credit, expecting around a dozen issuers, while Gerovich emphasizes the importance of balance sheet strength and plans to focus on issuing credit primarily in Japan and Asia [5]