The strategy involves issuing up to 555 million preferred shares, which could raise ¥555 billion ($3.8 billion), specifically for Bitcoin purchases.
Gerovich then asked the over 3,000 attendees whether they would approve amending the company’s articles of incorporation to enable the issuance of preferred shares, to which they consented.
The approved preferred shares plan includes two classes of perpetual equity offerings. Class A shares will provide a 5% yield, designed to compete with traditional fixed-income products.
Meanwhile, Class B shares carry a higher risk but include conversion options into common stock.
Gerovich highlighted Japan’s unique position for Bitcoin-backed financing, noting that the country’s lowest interest rates among G7 nations represent “our hidden superpower.”
The preferred shares are capped at 25% of the firm’s Bitcoin net asset value.
The acquisition comes as Metaplanet reported profits for the second quarter reaching 11.1 billion yen ($75.1 million), representing a 41% quarter-on-quarter increase.
The company’s Bitcoin income generation business, primarily through the sale of put options, contributed 1.9 billion yen ($12.9 million) in sales revenue during the quarter.
Metaplanet was recently upgraded to mid-cap status in FTSE Russell’s September review, earning inclusion in both the FTSE Japan Index and FTSE All-World Index.
