Metaplanet is issuing MARS preferred stock to raise dedicated capital to purchase Bitcoin, reflecting Strategy's STRC model; the plan has been confirmed by the CEO and is awaiting shareholder voting this month.
This move reinforces the long-term Bitcoin accumulation strategy. The market reacted positively: Metaplanet's stock rose 3.45% to 420 JPY, while MSTR from Strategy increased by 4.70% to 183.69 USD after the announcement.
MAIN CONTENT
MARS is a class A preferred stock, asset-backed, non-convertible, and non-dilutive to common stock.
Self-adjusting dividends help keep prices around par value, providing regular income and exposure to Bitcoin.
Metaplanet has not purchased BTC since 29/9 despite prices dropping >30%; the market is waiting for actions after the vote and the MSCI decision.
What is MARS and how is Metaplanet implementing it?
MARS is a preferred stock equity capital vehicle to raise funds for purchasing Bitcoin, confirmed by the CEO and awaiting shareholder approval this month.
The plan was confirmed by CEO Simon Gerovich at the 'Bitcoin for Corporations Symposium'. MARS (MetaPlanet Acquisition and Reserve Strategy) is described as equivalent to the successful STRC preferred stock of Strategy designed by Michael Saylor.
Shareholders will vote on this fundraising structure this month, aiming to unlock capital dedicated to purchasing more of the company's Bitcoin.
"I wish I had the name MARS. I think that's really cool."
Michael Saylor, Chairman of Strategy, Bitcoin for Corporations Symposium
What benefits does the MARS structure provide?
MARS is a non-convertible Class A preferred stock, prioritized over common equity and not dilutive; all raised funds are used to buy Bitcoin.
MARS stands above common stock in the capital ladder, granting asset priority to MARS investors and eliminating conversion rights, protecting common shareholders from dilution.
All funds raised from the issuance of MARS are strictly allocated to buy Bitcoin [BTC], making it a specialized fundraising vehicle for the BTC treasury.
To manage volatility, MARS employs a self-adjusting dividend mechanism: the monthly interest rate increases when prices are below par and decreases when above par, helping to stabilize around par value.
This mechanism is expected to create steady income along with BTC exposure, but avoid the volatility characteristic of common stocks.
Following the announcement, Metaplanet's stock rose 3.45% to 420 JPY; MSTR of Strategy increased by 4.70% to 183.69 USD, reflecting market support.
Is Metaplanet copying the playbook of Strategy?
Yes, MARS mirrors the STRC of Strategy; however, the recent pause in purchases creates a strategic conflict.
Despite activating the new fundraising mechanism, Metaplanet has not announced any Bitcoin purchases since 29/9, when it bought 2,744 BTC at around 112,000 USD.
Silence continues even as BTC drops more than 30% to 89,000 USD, a discount typically exploited by Strategy.
The market is waiting to see if Metaplanet will use MARS capital to 'buy the dip' immediately or wait for clearer legal guidance, including the upcoming MSCI decision.
Market impact and next milestones
The positive stock price reaction indicates confidence in MARS; the next focus is the shareholder vote and the timing of capital deployment.
Investors need to monitor: MARS voting results, preferred stock issuance schedule, BTC purchase deployment pace, BTC volatility around 89,000 USD, and signals from MSCI.
Frequently Asked Questions
What is MARS of Metaplanet?
MARS is a non-convertible Class A preferred stock, non-dilutive, used solely for capital raising to purchase Bitcoin. Self-adjusting dividends are based on the difference from par value, helping stabilize prices and providing regular income.
When will shareholders vote on MARS?
Shareholders are expected to vote this month, according to the CEO's confirmation at the 'Bitcoin for Corporations Symposium'. The outcome will determine the timing of issuance and deployment.
Why hasn't Metaplanet purchased BTC when prices have dropped significantly?
The company has not disclosed the reason. The market speculates they may wait for clearer legal guidance or milestones like the MSCI decision before deploying MARS capital.
Source: https://tintucbitcoin.com/metaplanet-ra-mat-mars-mua-them-bitcoin/
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