Company leaders said price fluctuations in Metaplanet’s own shares, amplified by its Bitcoin-focused strategy, have been advantageous. Volatility enabled financing partners to acquire stock at or near prevailing market prices, reducing the steep discounts generally associated with large equity offerings in Japan. As a result, Metaplanet was able to raise capital quickly without significant dilution.
Preferred-equity mechanism
A cornerstone of the strategy is a preferred-equity structure that Metaplanet claims can multiply its Bitcoin purchasing capacity twentyfold. Under the model, every $1 million in recurring revenue supports the issuance of roughly $20 million in perpetual preferred securities. These instruments function similarly to fixed-income products but, because they have no maturity date, avoid refinancing risk.
Proceeds from preferred issuances are earmarked for direct Bitcoin acquisition. Executives said that, unlike conventional leverage, the structure is designed to withstand Bitcoin’s price swings because coupon obligations on the preferred shares remain fixed while the underlying asset can appreciate over time. This approach, they argued, enables the company to scale exposure without resorting to short-term debt.
Targeting Japan’s cash reserves
Metaplanet’s thesis hinges on tapping Japan’s sizable cash hoard. Data from the Bank of Japan show that households and corporations collectively hold trillions of dollars in low-yield deposits, reflecting a persistent reluctance to shift into higher-risk or higher-yield assets. Gerovich described this environment as “uniquely suitable” for a strategy that converts idle cash into a digitally scarce asset.
The firm views itself as a gateway capable of channeling even a small fraction of those funds into Bitcoin. By combining equity issuance, preferred securities and its 20x capital model, Metaplanet believes it can create significant demand for Bitcoin without relying on traditional lending markets.
Corporate adoption outlook
Beyond its own balance sheet, Metaplanet projects that Bitcoin will evolve into a universal treasury asset. The company cited rising global interest in digital assets, ongoing currency debasement concerns and the need for a non-sovereign store of value as factors that could push corporations to diversify reserves.
Gerovich and LeClair argued that Japan’s corporate sector—already accustomed to holding large amounts of cash—may lead this transition. With interest rates near zero, the opportunity cost of reallocating a portion of reserves into Bitcoin is low, they said. Metaplanet aims to provide the financial instruments and market infrastructure required to make that shift operationally straightforward.
Next steps
Metaplanet plans to continue issuing both common and preferred equity as it expands its Bitcoin holdings. Management indicated that future fundraising rounds will follow the same framework, using recurring revenue to support additional preferred share issuance and, in turn, larger Bitcoin purchases. The company also intends to pursue partnerships within Japan’s financial sector to facilitate broader corporate participation.
Although the strategy relies on Bitcoin’s long-term appreciation, executives maintained that the preferred-equity structure limits near-term financing risk and aligns investor returns with company performance. They reiterated confidence that corporate adoption will accelerate as macroeconomic conditions highlight the limitations of cash-heavy balance sheets.
Whether Metaplanet’s model will attract a substantial share of Japan’s $7 trillion in cash remains uncertain. However, its rapid capital expansion and emphasis on Bitcoin as a treasury asset underscore a growing trend among firms seeking alternatives to traditional money-market instruments.
Crédito da imagem: Metaplanet
