Michael Saylor, executive chairman of Strategy (MSTR), announced that the company would not issue preferred equity in Japan for at least a year, providing Metaplanet a distinct early advantage in the market.
Metaplanet CEO Simon Gerovich raised the question during the Bitcoin MENA conference in Abu Dhabi, UAE, about whether MSTR plans to list a “digital credit” or permanent preferred equity in Japan. Gerovich raised the inquiry as Metaplanet prepares to introduce its own digital credit products into Japan’s predominantly “sleepy” perpetual preferred market.
Metaplanet expands preferred shares with MARS and Mercury
Last month, Metaplanet announced a two-tier preferred share structure in line with its bitcoin-centric funding strategy, starting with its Class A preferred shares known as Metaplanet Adjustable Rate Security (MARS). Dylan LeClair, Head of MSTR, stated that MARS is positioned as the reliable income and volatility-smoothing tool, ranking higher than both Mercury and common equity at the top of Metaplanet’s equity capital stack.
According to Gerovich, there are now just five listed perpetual preferred stocks in Japan, and All Nippon Airways (ANA) is the fifth. Gerovich stated that Metaplanet hopes to rank sixth and seventh with its two new instruments, “Mercury” and “MARS.”
Gerovich referred to Mercury as Metaplanet’s version of Strategy’s STRK. He mentioned that Mercury offers an initial payout of 40.40 yen ($0.26) for the period ending December 31, 2025, along with a set annual dividend of 4.9% on a notional strike price of 1,000 yen, with quarterly payments.
According to Gerovich, Mercury pays nearly 10 times more than Japanese bank deposits and money market funds, which yield almost nothing or about 50bps.
Metaplanet CEO intends to list Mercury by early 2026. He stated that Mercury is now in the pre-IPO stage. According to Gerovich, the second instrument, Mars, is intended to replicate Strategy’s STRC, a short-term, high-yield credit product.
Gerovich further noted that MSTR’s use of ATMs for both its common stock and perpetual preferreds is prohibited in Japan. Instead, He stated that Metaplanet employs a comparable system called a moving strike warrant (MSW), which it intends to deploy for its perpetual preferred offerings.
The two executives also disagreed on the number of Bitcoin treasury firms that ought to provide what Saylor referred to as “digital credit.” Saylor urged widespread participation and predicted a dozen issuers, Citing Strive’s (SATA) instrument. Gerovich urged that Metaplanet plans to offer credit mainly in Japan and possibly throughout Asia, but not in other markets at this time.
He claimed that Metaplanet should prioritize balance sheet health and financial stability over simply adding more issuers.
STRE expands Strategy’s preferred offerings across Europe
The introduction of digital credit products into Japan’s perpetual preferred market coincides with Strategy’s recent expansion of its own perpetual preferred program. MSTR currently has four perpetual preferences in the U.S.
In November, Strategy announced its first outside the US, Stream (STRM), a euro-denominated preferred security. According to the Strategy, STRE will be offered for 100 euros ($115) per share with a 10% annual dividend payable quarterly in cash.
MSTR stated that dividends compound every quarter. If they are not paid, the rate will rise by 100 basis points per quarter, up to a maximum of 18%. According to MSTR, in the event that Strategy does not declare a dividend, it must issue a Deferral Notice. Additionally, the Strategy must make commercially reasonable attempts to raise money during 60 days by selling junior securities such as STRK or STRD.
According to MSTR, if an event occurs that qualifies as a “fundamental change” under the certificate of designations governing the STRE Stock, holders may exercise certain rights. In such a case, they can require Strategy to buy back some or all of their shares for a cash amount equal to the specified repurchase price of the STRE Stock.
Notably, STRE is ranked lower than STRF, STRC, and debt, but higher than STRK, STRD, and MSTR common stock.
The Strategy stated that STRE targets professional and institutional investors in the European Economic Area (EEA). According to the MSTR, STRE will be listed on the Euro MTF Luxembourg and cleared through Euroclear and Clearstream.
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