Metaplanet’s New Capital Structure

Key Highlights

• On November 20, Metaplanet revealed its updated capital structure.

• In a move similar to Strategy, Metaplanet is shifting towards alternative financing that relies on preferred stock.

• Many companies holding Bitcoin are facing substantial paper losses.

As with others in the industry, the recent market plunge has led Metaplanet to experience notable unrealized losses, especially as Bitcoin nears the $80,000 mark. However, instead of causing alarm, the firm is aiming to raise $150 million for further acquisitions.

After 18 months, the newly proposed restructuring marks Metaplanet’s evolution into what some are calling Asia’s version of MicroStrategy. Initially, during their Bitcoin financing phase, Metaplanet issued a considerable number of common stock warrants. This strategy, while effective in raising capital, unfortunately diluted the shares of current investors.

Interestingly, this scenario mirrors previous challenges faced by Strategy. They opted for convertible notes instead of takeover rights; nonetheless, both methods had a similar dilutive impact. In 2025, the strategy turned to offering preference shares, creating several classes with varying dividend structures.

Now, looking to replicate that model, Metaplanet has introduced a two-tier capital structure featuring preferred shares dubbed MARS and MERCURY. The senior Class A stock, MARS, doesn’t convert into common stock and offers an adjustable monthly dividend. On the other hand, Mercury provides a fixed annual dividend of 4.9% and includes an option to convert to common shares at a price of 1,000 yen each.

According to data from bitcointreasuries.net, Metaplanet acquired BTC at an average of $108,036 but has since decreased its investment value by over 23%. Other organizations facing paper losses include Trump Media and Gemini. With BTC at $83,000, the 72 corporations monitored by bitcointreasuries.net have seen their holdings decline below what they originally paid.

The recent bear market has exacerbated issues in sectors driven by debt, igniting worries about market bubbles, especially within more speculative Digital Asset Treasury strategies. Surprisingly, even the so-called gold standard approach seen in strategies like this has faced a decline in premium, despite assurances from figures like Chairman Michael Saylor.

If treasury companies are pushed to delay dividend distributions amid ongoing market downturns, it’s plausible that bonds like Mercury could bear the brunt of these challenges.