Metaplanet Delays Preferred Share Listing Amid Japan’s Market Challenges

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Metaplanet delays preferred share listing amid challenging Japanese market structureMarkets

What to know:

  • Metaplanet CEO, Simon Gerovich, said Japan’s limited preferred equity market and exchange rules requiring stable recurring cash flows have delayed its planned Mars and Mercury preferred share listings.
  • Gerovich said the company’s proposal to pay monthly dividends is unusual in Japan’s market, where payouts are typically annual or semiannual.
  • Metaplanet shares are down 25% year to date.

Metaplanet (3350), a Japanese company with the largest corporate bitcoin holdings globally – currently holding 40,177 BTC – has announced that its planned sale of preferred shares has been postponed.

CEO Simon Gerovich explained that the delay was mainly due to the challenges of working within Japan’s relatively new preferred equity market. He noted that their planned investment would be only the seventh of its kind listed in Japan, and a groundbreaking first as a perpetual preferred share.

In November, Metaplanet introduced two types of preferred shares, named Mars and Mercury. This followed a similar move by Strategy, which had already released its own preferred shares, including the popular STRC.

Two key obstacles have stood in the way of Metaplanet’s listing of preferred shares.

Japanese regulations for stock exchanges require that any promised dividends be supported by reliable, ongoing income, proven through various market situations. Metaplanet needs to show that its Bitcoin business can consistently generate returns, even when Bitcoin prices fall, but it only has about a year and a half of operational history to demonstrate this.

Also, the company plans to pay dividends every month, which is much more often than the usual once or twice a year in Japan. This will require them to create a completely new system for tracking and distributing those payments.

Gerovich stated the company plans to issue preferred shares, noting that Japan is a major market where investors are actively seeking higher returns.

The company reported strong financial results, with net sales reaching $19.5 million (¥3.08 billion), a 251% increase compared to last year. Operating income also rose significantly, hitting $14.4 million (¥2.27 billion), up 283%. So far this quarter, the return on their bitcoin holdings is 2.8%. However, the company’s stock price has decreased by 25% this year.

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2026-05-13 19:54