In its Q2 earnings presentation, Metaplanet Inc. (TYO: 3350, OTCQX: MTPLF) announced its “Metaplanet Prefs” program and its intention to build a BTC-backed yield curve in Japan. The company stated, “As Japan’s largest public holder of Bitcoin, we aim to set a new standard in the Japanese fixed income market by introducing BTC-backed credit through Perpetual Preferred Equity.”
The issuance of different preferred equity instruments can approximate a yield curve based on each instruments’ Macaulay durations. Metaplanet recently filed a ¥555 billion shelf registration for two series of perpetual preferred shares each yielding 6%. This move mirrors what Strategy (MSTR) has done over the course of this year, a topic we’ve broken down in-depth here.
The 33rd page of the presentation clearly defines several types of perpetual preferred which will correspond to targeted “effective durations” of common Japanese Government Bonds (JGB).
According to the slide, medium and short durations can be replicated using perpetual preferred shares with variable dividends. The presentation expounds on the financial engineering behind preferred stock and their impact of BTC per share accretion.
Metaplanet was up 1.8% during today’s Tokyo trading session.
