Metaplanet to Launch First-Ever Bitcoin-Based Perpetual Preferred Shares in Japan

Simon Gerovich, the CEO of the Japan-based Bitcoin treasury firm, Metaplanet, has released a fresh update on the company's plans to expand its Bitcoin treasury while generating more income.

The update has garnered attention from the crypto community as the firm's proposal aims to create an income-generating product not yet seen in Japan.

Metaplanet eyes Japan's first-ever perpetual preferred shares focused on Bitcoin

In a post shared earlier today, Gerovich explained that the company is proposing to list what would become the first-ever Bitcoin-based perpetual preferred shares in Japan.

While he noted that there is a limited number of listed preferred shares in Japan today, the proposed product would become only the seventh listed preferred share in the country and the first structured as a perpetual preferred security.

While the product is yet to launch, Gerovich attributed the delay to the complications they have faced trying to align the product with Japanese regulatory standards.

Metaplanet integrates the Japan financial market with Bitcoin

Notably, a major restriction to the product listing that the company is critically considering is the Japanese market model which expects that dividends on preferred shares should be supported by sustainable cash flows generated from underlying operations.

While Metaplanet has proven qualified to meet this demand, the firm noted that it has already established a six-quarter track record in its Bitcoin Income Generation Business which demonstrates that the business can generate stable, recurring cash flows across both strong and weak Bitcoin market conditions.

Furthermore, the company revealed it is also considering a unique dividend operation system as listed companies in Japan have historically paid dividends once or twice per year.

However, the company is looking to design a dividend structure with more frequent distributions, including monthly dividends. While this requires a more careful and extensive review, it has contributed to the delay in the listing process.