Metaplanet President Simon Gerovich has defended the company’s shift toward issuing preferred shares.

His remarks come amid tightening liquidity conditions and waning market enthusiasm for “microstrategy-style” companies.

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Simon Gerovich says the company’s stock strategy is part of a capital optimization phase to boost Bitcoin holdings per share without diluting common shareholders.

The Japanese firm, often dubbed Asia’s MicroStrategy, recently suspended several series of stock acquisition rights, signaling a strategic recalibration.

Investors, however, are divided over the timing of the move, given Metaplanet’s current valuation compression below 1x its modified Net Asset Value (mNAV).

Gerovich outlined Metaplanet’s reasoning in a post on X (Twitter), describing preferred shares as a “more powerful tool” than common stock issuance.

Unlike equity raises, which increase Bitcoin reserves but also expand share count and cause dilution, preferred shares allow the company to raise capital at a fixed dividend rate.

“The goal is to continue increasing Bitcoin holdings per share while efficiently utilizing capital…If the rate of increase in Bitcoin exceeds the cost of capital, that difference acts as compound interest, increasing Bitcoin per share and ultimately benefiting common shareholders,” Gerovich

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Author: Lockridge Okoth