Metaplanet CEO Simon Gerovich revealed detailed plans. He explained how the company will continue to grow its Bitcoin holdings without diluting shareholder value. In his latest post, Gerovich detailed how Metaplanet’s balance sheet could be strengthened by issuing preferred stock instead of common stock. At the same time, it promotes the growth of Bitcoin per share (BTC/share).
As we enter the next phase of growth, a key question is why preferred stock is a more powerful tool than issuing common stock. The answer lies in how we can continue to increase Bitcoin per share without relying on issuing stocks. When a company raises common stock… pic.twitter.com/aPKxjXb67f
— Simon Gerovich (@gerovich) October 17, 2025
The strategy comes as Metaplanet enters what Gerovich calls its “next phase of growth.” The company, which is listed in Tokyo, is already Japan’s top Bitcoin-holding public company. We aim to use financial innovation to reshape the way corporate finance interacts with Bitcoin.
Preferred stock over common stock
Gerovich explained that the increase in common stock will help increase Bitcoin reserves. However, it also expands the total number of shares. This will slow down the growth of BTC/stock. However, preferred stock raises capital through fixed dividends without adding new common stock. This allows the company to increase its holdings without dilution. He emphasized that Metaplanet is focused on increasing its market net asset value (mNAV). An indicator that reflects how investors value companies relative to their Bitcoin holdings. “Our objective is to grow Bitcoin per share while using capital efficiently,” Gerovich said.
The logic is simple. When Bitcoin’s annual growth rate exceeds the cost of capital. Dividends paid on preferred stock. The compound interest effect increases the value of your BTC/share over time. Gerovich demonstrated this with a simple formula that compares Bitcoin’s appreciation rate and dividend rate. Let’s say Bitcoin grows compounded at 30% per year and has a dividend rate of 6%. The impact on comparable ratings 10 years later is 8.6 times greater. This means that issuing 6% preferred stock today will yield similar returns over the long term. Issued new shares at mNAV 8.6 times.
Strengthening Japan’s Bitcoin credit market
The CEO framed this strategy as part of Metaplanet’s broader mission to transform Japan’s credit markets. By introducing Bitcoin-backed yield products. The company already maintains one of the strongest balance sheets in Japan. Debt is low and Bitcoin reserves are steadily increasing. Gerovich believes preferred stock is a “more powerful tool” than common stock in raising capital. While protecting shareholder value.
He added that this approach is in line with Metaplanet’s vision of fusing traditional finance with Bitcoin’s decentralized model. A chart titled “Metaplanet Phase II” was shared along with his post. This visualized how different combinations of Bitcoin appreciation rate and dividend yield affect mNAV results. This study showed that even modest dividend rates can generate significant increases in value if Bitcoin prices rise consistently.
Shareholder approval and listing plan
Metaplanet stockholders approved Class A and Class B perpetual preferred stock at the September 1 special meeting. The registration procedure for issuance has been completed. However, the preferred stock has not yet been issued. The upper limit of the dividend rate is 6% per year. Although final terms are still pending. The company is also exploring the possibility of listing these preferred shares in the future. However, Gerovich clarified that formal discussions with the stock exchange have not begun and approval for the listing is not guaranteed.
Toward a new growth phase
In a follow-up post, Gerovich reaffirmed that Metaplanet is “entering its next phase, stronger than ever.” With clear direction and long-term beliefs. Prior to this, the company had temporarily suspended its holding of stock acquisition rights 20th to 22nd as part of its capital optimization strategy. Gerovich said the move reflects Metaplanet’s “relentless pursuit” to expand its Bitcoin holdings and maximize revenue efficiency. Gerovich’s preferred stock framework signals a strategic shift as Metaplanet improves its capital structure. Moving away from the traditional dilution-focused model to a Bitcoin-centric corporate finance system built for long-term sustainability.
