Metaplanet Defends Preferred Stock Strategy as Interest in ‘MicroStrategy-Style’ Plays Fades

Metaplanet President Simon Gerovich defended the company's strategy of issuing preferred shares, arguing it is a more powerful tool than common stock issuance for increasing Bitcoin holdings per share without diluting common shareholders. This defense comes as market enthusiasm for "MicroStrategy-style" Bitcoin treasury plays wanes amid tightening liquidity. Gerovich explained that preferred shares allow capital to be raised at a fixed dividend rate; if Bitcoin's growth rate exceeds this cost of capital, it compounds value for common shareholders, simulating dilution-free growth. However, some investors question the timing, given Metaplanet's stock is trading below its modified Net Asset Value (mNAV). The company recently suspended some stock acquisition rights to focus on capital discipline, while planning to introduce Bitcoin-backed yield instruments into Japan's credit markets.

(Source：BeInCrypto)