Metaplanet, a Japanese firm aiming to accelerate its Bitcoin accumulation, has encountered regulatory hurdles that delay its issuance of preferred stocks designed to fund Bitcoin purchases. This setback comes amid a significant net loss reported for the first quarter of the year, mainly driven by the decline in Bitcoin’s market value during the early 2026 downturn.
The company originally proposed issuing Mars and Mercury preferred shares last November, a financing strategy similar to Michael Saylor’s approach with Strategy’s STRC (Stretch) preferred stock. These preferred shares offer variable dividends and allow firms to raise capital without diluting Class A shares directly. However, Metaplanet’s CEO highlighted that Japan’s regulatory framework complicates the rollout. The country’s companies rarely distribute dividends more than once or twice a year, and regulators require firms to demonstrate sustainable cash flow from core operations before approving yield-paying stocks.
As a result, Metaplanet has had to adjust its Bitcoin buying strategy, shifting to quarterly purchases rather than relying on preferred stock funding. The firm currently holds just over 40,000 BTC, short of its 2026 target of 100,000 BTC, with uncertainty whether it can close the gap before year-end. The first quarter also saw a net loss equivalent to approximately $725 million, largely reflecting Bitcoin price fluctuations, while the company added around 5,000 BTC during that period.
In contrast, Strategy, leveraging its STRC, has already issued more than $8.5 billion worth of preferred stock, fueling substantial Bitcoin accumulation. Strategy’s STRC carries a variable interest rate around 11.5%, and the company currently holds over 818,000 BTC, having acquired upwards of 146,000 BTC planned for 2026. Industry estimates indicate Strategy could spend up to $30 billion on Bitcoin this year, underscoring the aggressive scale of its buying program compared to Metaplanet’s cautious pace.
Metaplanet’s leadership remains hopeful about navigating Japan’s regulatory landscape and bringing their preferred stock products to market. They are working with partners to adapt infrastructure and product design to align with local legal and market expectations. Yet, the extended timeline has introduced uncertainty about the company’s capacity to match Strategy’s rapid expansion in Bitcoin holdings.