Metaplanet on Monday approved an overhaul of its capital structure that may allow Japan's largest corporate bitcoin holder to boost funds through dividend-paying preferred shares for institutional investors.
Investors approved five proposals that collectively expand Metaplanet's ability to issue preferred shares, introduce recent dividend mechanisms and permit foreign institutional capital participation, said Dylan LeClair, the corporate's Bitcoin strategy director.
Approved measures include reclassifying capital reserves to permit for preferred stock dividends and potential repurchases, doubling the authorized variety of Class A and Class B preferred stock, and changing dividend structures to introduce variable and periodic payouts.
In addition, Metaplanet has approved the issuance of Class B preferred shares to international institutional investors.
According to Bitcoin Treasuries, Metaplanet held roughly 30,823 Bitcoin (BTC) value $2.75 billion at press time. This makes the corporate the most important corporate Bitcoin holder in Asia and the fourth largest globally.
Source: Dylan LeClair
Preferred Stock and Institutional Access
The approved proposals represent a move away from a pure growth-through-dilution approach to a more traditional market approach where income-producing securities coexist with a Bitcoin-focused balance sheet strategy.
Rather than offering direct Bitcoin income, Metaplanet uses preferred shares to pool exposure to its firms' Bitcoin holdings in a format familiar to institutions.
One of probably the most notable changes is the move for the corporate's Class A preferred stock to adopt a monthly variable dividend structure generally known as “Metaplanet Adjustable Rate Security.”
This design allows investors regular income that meets the institutional need for predictable money flows.
Class B preferred stock was also amended to incorporate quarterly dividends, a 10-year issuer call at 130% of par value, and an investor put option that could be exercised if a professional initial public offering of the safety doesn’t occur inside one yr
This means Metaplanet should purchase back the shares at a premium price after 10 years, while investors have the best to exit early if the corporate doesn’t go public inside a yr.
These features reflect the protections commonly present in the private credit and structured equity markets and reduce downside risk for long-term investors.
Additionally, by targeting foreign institutions, Metaplanet enables global investors who might want exposure to Bitcoin without directly holding spot BTC or volatile common stocks.
Metaplanet expands into global markets
Metaplanet is some of the closely watched Bitcoin-focused public firms in Asia.
Although it operates within the Japanese regulatory and capital markets environment, it is commonly in comparison with Bitcoin treasury models from firms within the US.
The company's approach illustrates how non-U.S. firms are adapting their Bitcoin strategies to local market constraints while pursuing global capital.
On Friday, the corporate announced that it could begin over-the-counter trading within the U.S. through American Depositary Receipts. The announcement got here months after the corporate launched a subsidiary in Miami.
