Metaplanet CEO Simon Gerovich Outlines Non-Dilutive Bitcoin Growth Plan

Metaplanet CEO Simon Gerovich has unveiled a detailed plan. He explained how the company will continue expanding its Bitcoin holdings without diluting shareholder value. In his latest post, Gerovich broke down how issuing preferred shares, instead of common stock, can strengthen Metaplanet’s balance sheet. While boosting Bitcoin per share (BTC/share) growth.

The strategy comes as Metaplanet enters what Gerovich calls its “next phase of growth.” The Tokyo-listed firm, already Japan’s top Bitcoin holding public company. It aims to use financial innovation to reshape how corporate treasuries interact with Bitcoin.

Preferred Shares Over Common Stock

Gerovich explained that raising common equity helps increase Bitcoin reserves. But also expands the total number of shares. This slows BTC/share growth. Preferred shares, however, raise capital through fixed dividends without adding new common shares. This allows the company to grow holdings without dilution. He emphasized that Metaplanet’s focus is on improving market net asset value (mNAV). A metric that reflects how investors value the company relative to its Bitcoin holdings. “Our objective,” Gerovich noted, “is to increase Bitcoin per share while using capital efficiently.”

The logic is straightforward. When the Bitcoin annual growth rate exceeds the cost of capital. The dividend paid on preferred shares. The compounding effect increases BTC/share value over time. Gerovich demonstrated this with a simple formula comparing Bitcoin appreciation and dividend rates. If Bitcoin compounds at 30% annually while the dividend rate is 6%. The equivalent valuation impact after ten years would be 8.6 times higher. This means issuing 6% preferred shares today would have the same long-term benefit. As issuing new equity at an mNAV of 8.6x.

Strengthening Japan’s Bitcoin Credit Market

The CEO framed this strategy as part of Metaplanet’s broader mission to transform Japan’s credit markets. By introducing yield instruments backed by Bitcoin. The company already maintains one of Japan’s strongest balance sheets. With low debt and steadily increasing Bitcoin reserves. Gerovich believes preferred shares are “a more powerful tool” than common equity for raising capital. While protecting shareholder value

This approach, he added, aligns with Metaplanet’s vision to merge traditional finance with Bitcoin’s decentralized model. A chart shared alongside his post, titled Metaplanet Phase II. It visualized how different combinations of Bitcoin appreciation rates and dividend yields affect mNAV outcomes. It showed that even modest dividend rates can produce substantial value growth when Bitcoin prices rise consistently.

Shareholder Approval and Listing Plans

Metaplanet shareholders approved Class A and Class B Perpetual Preferred Shares at an extraordinary general meeting on September 1. The registration process for issuance is complete. But no preferred shares have been issued yet. The dividend rate is capped at 6% annually. Though final terms are still pending. The company is also exploring the possibility of listing these preferred shares in the future. But Gerovich clarified that no formal consultation with the stock exchange has started, and listing approval is not guaranteed.

Entering a New Growth Phase

In a follow-up post, Gerovich reaffirmed that Metaplanet is “entering the next phase stronger than ever.” With clear direction and long-term conviction. Earlier, the company had temporarily suspended its 20th-22nd series of stock acquisition rights as part of its capital optimization strategy. This move, according to Gerovich, reflects Metaplanet’s “relentless pursuit” of expanding Bitcoin holdings and maximizing yield efficiency. As Metaplanet refines its capital structure, Gerovich’s preferred share framework signals a strategic shift. Away from traditional dilution-heavy models and toward a Bitcoin centric corporate finance system built for long-term sustainability.