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- Metaplanet issues MERCURY shares, raising $135 million in funding.
- Bitcoin-driven strategy fuels Metaplanet’s new preferred share offering.
- MERCURY shares bring a hybrid investment approach for bitcoin growth.
Metaplanet, a prominent treasury firm, plans to issue 23.61 million Class B Preferred Shares, named MERCURY. These shares will be priced at ¥900 ($5.71) each. It will offer it to foreign institutional investors. Approval from the extraordinary general meeting is required on December 22. The transaction will boost the company’s Y by approximately $135 million (21.25 billion). This will be one of the pre-IPO financing strategies.
Speaking of the overall valuation, CEO Simon Gerovich and Director Dylan LeClair stated that it would amount to approximately $ 150 million. This amount represents the liquidation preference of the Y=23.61billion of the MERCURY shares, and not the proceeds. The shares are perpetual, convertible, and non-voting, offering a fixed annual dividend of 4.9% on a ¥1,000 ($6.34) notional amount. This hybrid instrument combines fixed income and potential bitcoin-led equity development.
Also Read: CEA Industries Expands BNB Holdings to Over $13M Amid Cryptocurrency Decline
Proceeds Allocation and Strategic Plans
Metaplanet will invest approximately $15 billion (roughly $95 million) in the purchase of bitcoins. Such purchases are expected to occur between December 2025 and March 2026. Additionally, Y=1.67 billion (approximately $10.6 million) will underpin the company’s bitcoin-generation income business. The other $3.75 billion (roughly $23.8 million) will be used to redeem its 19th Series corporate bonds.
This firm is currently in possession of 30,823 BTC, which is worth approximately $ 2.8 billion. This puts Metaplanet in the fourth-largest holder of public bitcoin treasury. Metaplanet aims to mitigate the dilution and continue its bitcoin accumulation plan despite the current market challenges. This act reflects the Bitcoin strategy employed by the company owned by Michael Saylor.
Capital Restructuring to Stabilize Volatility
Metaplanet is also going to reorganize the capital stack. The Preferred A shares will be renamed as MARS, and a new senior position will be created. The shares of MARS will provide a variable monthly dividend, which will help minimize market volatility. The shares in MERCURY will be positioned between MARS and common equity, placing Metaplanet in a stable position to finance its long-term position.
There has been a significant decline in the company’s share price. Since June, the stock price of Metaplanet has dropped by 80 percent. The cap-to-net asset value ratio has also reduced significantly. Such actions indicate that Metaplanet is working on adapting to market conditions and preserving its future development.
Also Read: Bitcoin Faces Downward Pressure Amid Recent Price Drop
