Michael Saylor, executive chairman of Strategy (MSTR), announced that the company would not issue preferred equity in Japan for at least a year. This decision provides Metaplanet with a distinct early advantage in the Japanese market.
During the Bitcoin MENA conference in Abu Dhabi, UAE, Metaplanet CEO Simon Gerovich inquired whether MSTR planned to list a “digital credit” or permanent preferred equity in Japan. Gerovich raised this question 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 aligned with its bitcoin-centric funding strategy. This structure begins with its Class A preferred shares, known as Metaplanet Adjustable Rate Security (MARS). Dylan LeClair, Head of MSTR, stated that MARS is positioned as a 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 currently only five listed perpetual preferred stocks in Japan, with All Nippon Airways (ANA) being the fifth. Gerovich expressed Metaplanet’s aspiration to rank sixth and seventh with its two new instruments, “Mercury” and “MARS.”
Gerovich described Mercury as Metaplanet’s equivalent to Strategy’s STRK. He noted 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.
Mercury provides a payout nearly 10 times greater than Japanese bank deposits and money market funds, which yield almost nothing or approximately 50 basis points.
Metaplanet CEO intends to list Mercury by early 2026, and it is currently in the pre-IPO stage. The second instrument, Mars, is designed to replicate Strategy’s STRC, a short-term, high-yield credit product.
Gerovich further pointed out that MSTR’s use of ATMs for both its common stock and perpetual preferreds is prohibited in Japan. Instead, Metaplanet employs a comparable system called a moving strike warrant (MSW), which it plans to utilize for its perpetual preferred offerings.
The two executives also held differing views on the number of Bitcoin treasury firms that should offer what Saylor termed “digital credit.” Saylor advocated for broad participation, predicting a dozen issuers and citing Strive’s (SATA) instrument. Gerovich indicated that Metaplanet plans to offer credit primarily in Japan and potentially across Asia, but not in other markets at this time.
He emphasized that Metaplanet should prioritize balance sheet health and financial stability over simply increasing the number of issuers.
STRE Expands Strategy’s Preferred Offerings Across Europe
The introduction of digital credit products into Japan’s perpetual preferred market occurs as Strategy has recently expanded its own perpetual preferred program. MSTR currently offers four perpetual preferences in the U.S.
In November, Strategy announced its first offering outside the U.S., Stream (STRM), a euro-denominated preferred security. STRE will be offered at 100 euros ($115) per share with a 10% annual dividend payable quarterly in cash.
Dividends are compounded quarterly. If not paid, the rate will increase by 100 basis points per quarter, up to a maximum of 18%. In instances where Strategy does not declare a dividend, it must issue a Deferral Notice. Additionally, Strategy must make commercially reasonable efforts to raise funds within 60 days by selling junior securities such as STRK or STRD.
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 scenario, they can require Strategy to repurchase 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.
STRE targets professional and institutional investors in the European Economic Area (EEA). STRE will be listed on the Euro MTF Luxembourg and cleared through Euroclear and Clearstream.