Metaplanet Approves Issuance of Dividend-Paying Shares for Overseas Institutions

TLDR

• Metaplanet to issue preferred shares to overseas institutions for Bitcoin exposure.
• Class A shares will offer monthly floating-rate dividends to institutional investors.
• The company holds 30,823 BTC, making it Asia’s largest corporate Bitcoin holder.
• Class B shares include quarterly dividends, a 10-year call option, and a put option.

Metaplanet, Japan’s largest corporate holder of Bitcoin, has secured approval to issue preferred shares offering dividends. These measures aim to attract international institutional investors by providing a more familiar investment structure. The move signals a shift in Metaplanet’s capital strategy, which is currently centered around its substantial Bitcoin holdings.

The company’s Bitcoin strategy director, Dylan LeClair, confirmed that five proposals were approved by investors. These include doubling the number of authorized Class A and Class B preferred shares, and amending dividend structures to accommodate floating and periodic payouts. Metaplanet is positioning itself to blend Bitcoin exposure with traditional equity formats, providing global investors with a new way to gain access to its Bitcoin holdings.

Focus on Institutional Investors

The new structure allows Metaplanet to tap into a broad pool of institutional investors, particularly those seeking predictable income. Class A shares, for instance, will offer monthly floating-rate dividends, allowing institutional investors to benefit from consistent returns. This approach aligns with the growing demand for income-producing investments in the market.

In addition to monthly payouts, Metaplanet’s Class B preferred shares will provide quarterly dividends. Investors in these shares will also be granted a 10-year call option, allowing Metaplanet to repurchase shares at a 130% premium after ten years. Moreover, if an initial public offering (IPO) is not completed within one year, investors can exercise a put option, further ensuring their ability to exit the investment if conditions are not met.

These provisions provide protections commonly seen in private equity markets, creating an attractive proposition for long-term institutional investors. It also marks a significant shift from a growth-through-dilution approach to one that emphasizes income generation.

Exposure to Bitcoin Without Holding Spot BTC

Metaplanet’s Bitcoin holdings play a central role in its strategy. The company currently holds 30,823 BTC, valued at approximately $2.75 billion. This makes Metaplanet the largest corporate Bitcoin holder in Asia and the fourth-largest globally. The new dividend-paying preferred shares are designed to offer exposure to Bitcoin without requiring institutional investors to hold spot BTC directly.

This move also helps mitigate some of the volatility traditionally associated with Bitcoin investments. Instead of dealing with Bitcoin’s price fluctuations, investors can gain exposure to Metaplanet’s holdings through a more stable, dividend-yielding investment format. This structure provides a way for investors to gain indirect exposure to Bitcoin’s potential while benefiting from predictable cash flows.

Metaplanet Expands Global Reach

Metaplanet’s capital strategy also includes expanding its global footprint. Recently, the company announced plans to begin trading in the United States through American Depositary Receipts (ADRs), following its establishment of a subsidiary in Miami. This will allow Metaplanet to tap into US-based institutional investors, further broadening its investor base.

By targeting overseas institutions, Metaplanet aligns itself with a growing trend among non-US companies adapting their business models to local market conditions while pursuing global capital. This international expansion is part of the company’s broader effort to integrate Bitcoin into traditional capital markets.

The post Metaplanet Approves Issuance of Dividend-Paying Shares for Overseas Institutions appeared first on CoinCentral.