Metaplanet Approves Dividend-Paying Shares for Global Institutional Investors
Metaplanet, Japan's largest corporate Bitcoin holder, has approved the issuance of preferred shares that offer dividends, signaling a new direction towards attracting institutional investors focused on income.
Metaplanet’s New Strategy
On Monday, Metaplanet approved significant changes to its capital structure, allowing it to raise funds through dividend-paying preferred shares aimed specifically at institutional investors.
Investors accepted five proposals that will enable Metaplanet to issue preferred shares, establishing new dividend mechanics and welcoming foreign institutional capital, as noted by Dylan LeClair, the Bitcoin Strategy Director of the company.
These changes include: reclassifying capital reserves for preferred share dividends, increasing the authorized number of Class A and Class B preferred shares, and updating dividend structures to feature floating and periodic payouts.
Moreover, Metaplanet has now approved Class B preferred shares for issuance to international institutional investors.
As of now, Metaplanet holds approximately 30,823 Bitcoin (BTC), which amounts to $2.75 billion according to Bitcoin Treasuries, making it the largest corporate holder of Bitcoin in Asia and the fourth-largest worldwide.
Preferred Shares and Investor Engagement
The proposals signify a departure from solely growth-focused strategies towards a more conventional approach where income-generating securities co-exist with a Bitcoin-centric balance sheet.
Instead of delivering direct Bitcoin yields, Metaplanet plans to utilize preferred equity to reflect its corporate Bitcoin stakes in a format more familiar to institutional investors.
Noteworthy modifications include a monthly floating-rate dividend for Class A preferred shares, termed the “Metaplanet Adjustable Rate Security,” aligning with institutional demands for consistent cash flow.
For Class B shares, changes now incorporate quarterly dividends, a ten-year buyback option at a 130% premium, and an option for investors to exit early if a qualifying IPO does not occur within a year.
These updates are comparable to security protections typically featured in private credit and structured equity markets, minimizing risks for long-term capital providers.
Additionally, by focusing on international institutions, Metaplanet provides global investors the chance to gain Bitcoin exposure without the need to directly own spot BTC or volatile common stocks.
Expanding Global Presence
As a notable player among Bitcoin-centered public enterprises in Asia, Metaplanet’s strategies are often likened to corporate Bitcoin treasury models found in the U.S., despite its operations within Japan’s regulatory framework.
The company’s strategies exhibit how companies outside the U.S. adapt Bitcoin practices to suit local market requirements while still accessing global capital. Recently, it was revealed that Metaplanet would be trading in the U.S. via American Depositary Receipts in the over-the-counter market, following the establishment of a subsidiary in Miami.
Source: Dylan LeClair
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