TLDR:
- Metaplanet aims to boost Bitcoin per share using preferred shares rather than common equity dilution.
- Preferred shares let the firm raise capital at fixed dividend rates while maintaining ownership ratios.
- Simon Gerovich’s model shows a 30% Bitcoin growth and 6% dividend yields 8.6x long-term mNAV gains.
- Metaplanet plans to use Bitcoin-backed yield tools to reshape Japan’s corporate credit markets.
Metaplanet is exploring a new strategy to strengthen its Bitcoin position while avoiding shareholder dilution.
The company aims to expand its Bitcoin holdings by issuing preferred shares instead of common stock. This shift, according to its president Simon Gerovich, could help raise capital efficiently while keeping Bitcoin per share on an upward track.
The approach also offers a way to benefit from Bitcoin’s long-term growth without increasing share count. It marks another move by Metaplanet to merge corporate finance tools with Bitcoin accumulation.
Preferred Shares as a Bitcoin Growth Tool
In a detailed post on X (formerly Twitter), Metaplanet president Simon Gerovich explained how preferred shares give the company an edge.
He said that when firms raise capital through common stock, they increase their Bitcoin holdings but also dilute ownership. That process often slows growth in Bitcoin per share over time.
Gerovich outlined that preferred shares solve this by providing fixed dividend payments without adding new common shares.
This allows the firm to raise funds while maintaining or even boosting Bitcoin per share. He added that Metaplanet evaluates performance using market net asset value (mNAV), which reflects how investors value its enterprise against its Bitcoin holdings.
According to Gerovich, the goal is to keep increasing Bitcoin per share while managing capital use carefully.
If Bitcoin appreciates faster than the dividend rate, the difference compounds in favor of existing shareholders. He said that’s how the firm turns growth into long-term value without relying on constant equity issuance.
The president illustrated this concept using a 10-year projection. If BTC grows 30% annually and preferred shares yield 6%, the result compounds to an 8.6x value multiplier.
In other words, issuing 6% preferred shares could replicate the same effect as selling common equity at an mNAV of 8.6x.
Aiming for a Stronger Bitcoin Balance Sheet
Gerovich described the strategy as part of a wider plan to build a Bitcoin-backed balance sheet that supports new yield instruments in Japan. He said Metaplanet now maintains a strong financial base with minimal debt and rising Bitcoin reserves.
The company’s long-term vision includes transforming Japan’s credit markets through Bitcoin-linked financial products.
This approach could make Bitcoin a core element in future corporate funding models. By using preferred shares, Metaplanet reduces dependence on fluctuating market valuations while gaining more predictable access to capital.
Gerovich emphasized that this structure ensures common shareholders benefit directly from Bitcoin’s growth over time.
Metaplanet continues to position itself as Japan’s most active Bitcoin-focused public firm. Its steady accumulation of Bitcoin and creative financing strategies could set new standards for how traditional companies engage with crypto assets.
