Metaplanet, Japan’s largest corporate holder of Bitcoin, has announced a delay in the launch of its perpetual preferred shares due to regulatory and infrastructure hurdles. CEO Simon Gerovich noted that the complexities of Japan’s preferred equity market are the primary factors contributing to this postponement.
The company, which holds 40,177 BTC on its balance sheet, had planned to introduce a two-tier preferred share class, named Mars and Mercury. This initiative, first announced in November, would mark the introduction of the first-ever perpetual preferred share in Japan, making it only the seventh listed preferred share in the country.
Two significant challenges have emerged in the path to listing these preferred shares. Firstly, Japanese exchange regulations stipulate that preferred dividends must be supported by sustainable cash flows that can withstand various market conditions. Metaplanet must provide evidence that its Bitcoin Income Generation Business can yield stable returns, despite having only a six-quarter operational history.
Secondly, the company’s intention to offer monthly dividends contrasts sharply with the typical annual or biannual dividend schedule in Japan. This ambition necessitates the development of a new dividend infrastructure, including the establishment of record dates.
Despite these challenges, Gerovich reaffirmed Metaplanet’s commitment to bringing preferred shares to market, emphasizing Japan’s status as a capital market with a high demand for yield.
In its latest earnings report, Metaplanet reported net sales of $19.5 million (¥3.08 billion), a 251% increase year-on-year, alongside an operating income of $14.4 million (¥2.27 billion), reflecting a 283% rise. The company reported a Bitcoin yield of 2.8% for the quarter to date.
However, Metaplanet’s shares have faced challenges, declining by 25% year-to-date. In a related trend, Bitcoin held by long-term investors, referred to as conviction buyers, has surged to nearly 4 million BTC, marking a 300% increase since late 2025. This shift indicates a significant movement of Bitcoin into the hands of long-term holders, which analysts suggest may tighten liquid supply on exchanges.
Metaplanet has postponed the launch of its perpetual preferred shares due to regulatory challenges in Japan's equity market. The company aims to navigate these obstacles while reporting significant year-on-year growth in net sales and operating income.