Metaplanet CEO explains why preferred share launch is taking time

Metaplanet CEO Simon Gerovich said the company is still working through the path to list its planned preferred shares in Japan. 

He said the product would be only the seventh listed preferred share in Japan and the first listed perpetual preferred if approved.

Gerovich said the review is taking longer because Japan’s preferred share market is small and cautious. He described the planned product as a possible addition to Japan’s capital markets, but said the process must remain careful due to the structure’s novelty.

Dividend capacity remains under review

Gerovich said Japanese market practice expects preferred share dividends to come from sustainable cash flows, not only balance-sheet holdings. Metaplanet must show that its Bitcoin Income Generation Business can support payouts under different market conditions. 

He said Metaplanet already has a six-quarter record in that business. The company is also trying to show that related operations can scale and support recurring cash flows. Gerovich said “the path to listing is necessarily deliberate.”

Moreover, another issue is dividend operations. Gerovich said Japanese listed companies usually pay dividends once or twice per year, while Metaplanet is designing a structure that could include monthly distributions.

That requires work on record dates, shareholder checks, dividend calculations and recurring notices. Gerovich said the company is working with partners to build the needed process under Japanese market practice. He added that Metaplanet is “deeply committed to bringing this product to market.”

Wider treasury pressure

Earlier reports noted that Metaplanet had discussed preferred shares and possible buybacks if its market value fell below the value of its Bitcoin holdings. Crypto.news also reported that digital asset treasury firms faced pressure when share prices moved closer to, or below, their crypto asset value.

Separate coverage said Metaplanet benefits from yen-denominated financing because it can fund Bitcoin accumulation at lower local currency costs than many U.S. peers. That model still faces risk from Bitcoin price swings, share issuance pressure and investor demand for steady payouts. 

Metaplanet’s website currently lists Bitcoin holdings of 40,177 BTC, making Bitcoin central to its treasury identity. The preferred share plan may test whether Japan’s income-focused investors will accept a product tied to Bitcoin-related cash flows.