Metaplanet plans Bitcoin-backed preferred shares in Japan

Metaplanet is set to launch Japan’s first Bitcoin-backed perpetual preferred shares, facing regulatory delays but aiming to boost dividends and integrate Bitcoin into finance.

Metaplanet, a Japanese digital asset management firm, is moving forward with plans to launch Japan’s first Bitcoin-backed perpetual preferred shares. This initiative would introduce the country’s seventh preferred stock and the first perpetual structure to Japan’s limited market. The company’s goal is to expand its Bitcoin holdings and offer a new income-generating product, with the potential to increase dividend distribution frequency, possibly to monthly payments. However, the listing process has encountered delays due to Japan’s strict regulatory requirements. These regulations demand that dividends be supported by sustainable cash flows from core business operations. To address this, Metaplanet has demonstrated a six-quarter track record in Bitcoin revenue, aiming to meet these standards. Metaplanet is collaborating with partners to enhance infrastructure and ensure compliance with Japanese market practices. Despite a longer-than-expected process and a 25% decline in share price year to date, the company underscores the importance of this initiative for bridging yield gaps and integrating Bitcoin into traditional Japanese finance.