Metaplanet Seeks $3.7B Funding- Another Large Bitcoin Purchase?

Metaplanet is set to boost its Bitcoin strategy with a proposed $3.7 billion funding round through perpetual preferred shares. The plan, pending shareholder approval at an upcoming Extraordinary General Meeting (EGM), has sparked speculation about the firm’s next significant Bitcoin acquisition, building on its recent purchase of 780 BTC.

Metaplanet To Raise $3.7B for Bitcoin Expansion

According to a recent X post, Metaplanet has called an Extraordinary General Meeting to seek approval for issuing new perpetual preferred stock. This proposal includes plans to raise a staggering ¥555 billion ($3.7 billion) to bolster its Bitcoin treasury. CEO Simon Gerovich took to X to announce the platform’s massive funding round.

Interestingly, this move is a key step towards Metaplanet’s ambitious goal of amassing 210,000 BTC by 2027, underscoring its commitment to Bitcoin accumulation. The proposal features two classes of perpetual preferred stock: Class A (non-convertible) and Class B (convertible).

Notably, this development comes on the heels of Metaplanet’s recent purchase of 780 Bitcoin, worth $92.5 million. With its latest purchase, the Japanese investment firm’s total BTC holdings have hit a staggering 17,132 BTC, valued at approximately $1.73 billion. As Metaplanet seeks new funding, the crypto community speculates about an imminent BTC purchase, fitting into the company’s broader Bitcoin accumulation plan.

Despite the move, the Metaplanet stock price has dipped by a notable 7.65%, currently at 1,063 yen. Over the past five days, the stock price has seen a decline of 10% and 33% over the past 30 days. However, the Metaplanet shares have seen a remarkable growth of 115% over the last six months.

How Perpetual Preferred Shares Will Drive Bitcoin Strategy

Metaplanet’s decision to use perpetual preferred shares for funding highlights its long-term approach. These shares offer fixed dividend payments and priority over common stock, with no maturity date, ensuring a permanent source of capital.

It significantly boosts Metaplanet’s position in the global public companies holding Bitcoin. As CoinGape reported, Metaplanet’s BTC holdings have surged past those of industry leaders like Tesla and Galaxy Digital.

Significantly, perpetual preferred shares offer several strategic benefits. Initially, this approach may be non-dilutive for common shareholders, as preferred shares typically don’t carry voting rights and are distinct from common equity, mitigating immediate dilution concerns. It also provides a stable source of long-term capital, enabling Metaplanet to fund its ongoing Bitcoin accumulation without relying on volatile operational cash flows.

Additionally, preferred shares can attract investors seeking fixed income or stable returns, tapping into a different pool of capital than traditional equity or debt, and potentially broadening Metaplanet’s investor base. It could further solidify the Japanese investment company’s commitment to its Bitcoin strategy.