Metaplanet Raises $135M For Bitcoin As Saylor Says “We Can Survive 80% Crash”

What Happened

Metaplanet’s board resolved on November 20 to issue 23.61 million Class B preferred shares through third-party allotment to overseas institutional investors, raising ¥21.25 billion ($135M) with estimated net proceeds of ¥20.41 billion ($130M) after expenses.

MSCI proposed in October consultations to exclude companies whose digital asset holdings exceed 50% of total assets, viewing such firms as closer to investment funds rather than operating businesses.

Strategy continues aggressive accumulation despite headwinds, acquiring 8,178 Bitcoin this week at $102,171 per coin, lifting total holdings to 649,870 tokens.

Saylor maintained that Bitcoin will continue to outperform gold and the S&P 500, describing the asset as “digital capital” for long-term investors.

Market Context

Tokyo-listed Metaplanet has approved a $135 million perpetual preferred share offering to fund Bitcoin acquisitions, while Strategy founder Michael Saylor defended corporate treasury strategies amid mounting market volatility.

The Japanese firm’s Class B preferred shares carry a 4.9% fixed dividend and a ¥1,000 conversion price, as Asia’s largest Bitcoin treasury company doubles down on digital asset accumulation despite trading below the value of its crypto holdings.

The conversion price sits significantly above Metaplanet’s November 19 closing price of ¥375 ($2.40), limiting immediate dilution concerns.

Saylor Dismisses Volatility Concerns

Michael Saylor pushed back against concerns about Bitcoin treasury models during a November 14 CNBC interview, declaring that Strategy “can withstand an 80%–90% drawdown and keep operating” despite recent market turbulence.

The Bitcoin treasury sector has entered what Coinbase Research describes as a “player-versus-player” competitive phase, with 26 of 168 firms now trading below their crypto reserves.

Why It Matters

JPMorgan analysts estimated MSCI removal alone could trigger up to $2.8 billion in outflows from passive funds, with decisions expected by January 15.

Details

The payment date is scheduled for December 29, pending shareholder approval at an extraordinary general meeting on December 22.

Metaplanet’s MERCURY Preferred Shares

The Class B shares, branded “MERCURY” for Metaplanet Convertible for Return & Yield, combine quarterly fixed dividends with equity upside through conversion rights into common stock.

Each preferred share entitles holders to ¥12.25 ($0.08) in annual dividends distributed quarterly, though the initial period ending December 31 pays just ¥0.40 ($0.003) per share.

Representative Director Simon Gerovich stated the structure aims to “minimize dilution from common share issuances while continuing to expand BTC holdings,” calling it a “new step in scaling” their Bitcoin treasury strategy.

The executive chairman emphasized that his company maintains minimal leverage at just 1.15 times, with debt extending for 4.5 years.

“If you want to ride the rocket, you got to be prepared to pull the G’s,” Saylor said, noting Bitcoin has experienced six major drawdowns over five years while still delivering 50% average annual returns.

He compared Strategy’s 71% five-year performance to Nvidia, asserting no S&P stock has performed better over that period.

As uncovered today, Strategy faces potential exclusion from the MSCI USA and Nasdaq 100 indexes as providers reassess firms whose balance sheets are dominated by digital assets.

Strategy’s stock has plunged over 60% from its November 2024 record highs, though it remains up more than 1,300% since initiating Bitcoin purchases in August 2020.

Bitcoin Treasury Sector Faces Premium Collapse

Industry-wide premiums compressed from 3.76 times net asset value in April to 2.8 times currently as monthly corporate Bitcoin adoption dropped 95% since July.

Metaplanet became the first major treasury company to consistently trade below its holdings in October, prompting a 75 billion yen share repurchase program backed by a $500 million credit facility.