Metaplanet, a Japan-based crypto asset management company, attracted the attention of the cryptocurrency ecosystem with its innovative plans in the country’s financial markets. The company’s CEO, Simon Gerovich, announced that, in addition to Metaplanet’s steps to expand its Bitcoin treasury position, they are preparing a new income-oriented financial product that is unique in Japan.
Bitcoin-focused perpetual preferred shares are planned
In the statement he shared during the day, Gerovich stated that the company is about to complete its preparations to offer Bitcoin-based permanent preferred shares for the first time in Japan. Options for preferred shares in the Japanese financial market are quite limited. Currently, only six different privileged shares are traded in the country, and with the product proposed by Metaplanet, this number will increase to four. However, what is more remarkable is that this product is the first permanently structured privileged share in the country.
The company’s product launch process has not yet been completed. The main reason for this delay is the difficulties in fully complying with the regulations in Japan. Metaplanet’s manager states that they are carrying out a meticulous process to overcome the technical and administrative obstacles imposed by the legislation.
Bitcoin integration in the Japanese financial market
One of the biggest obstacles to new product entry is that the Japanese regulatory model requires that dividends for preferred shares be supported by sustainable cash flows from the company’s core activities. Metaplanet, on the other hand, emphasizes that the business model through which they generate income through Bitcoin can meet this requirement.
The company states that its Bitcoin revenue generation business has generated a stable and recurring cash flow for the last six quarters, proving its sustainability in both strong and weak market conditions. Thus, Metaplanet aims to provide the necessary financial transparency and trust towards regulators.
However, the company points out that public companies in Japan generally distribute dividends once or twice a year. Metaplanet, on the other hand, aims to design a different distribution model that includes more frequent – for example monthly – dividend payments to investors.
However, this approach requires a more detailed evaluation and audit process compared to current practices. For this reason, it is reported that the process was prolonged and the launch could not be brought forward.
Metaplanet management, “Our Bitcoin revenue items provided a stable cash flow during strong and weak market periods, as regulators expected. We have considered tightening the dividend model to implement such a product for the first time in Japan.” He made a statement.
With its innovative plans in the Japanese markets, Metaplanet is preparing to take an important step towards integrating crypto assets with traditional financial products. With its permanent preferred share model and possible monthly dividend structure, the company’s initiative could set a new example in the industry for both classical investors and the crypto universe.
