Japanese Bitcoin accumulation company Metaplanet has encountered significant regulatory hurdles in its preferred stock issuance plans, according to reports from AMBCrypto. The company's CEO, Simon Gerovich, attributed the delays to Japanese regulations requiring yield-paying firms to have sustainable cash flows from underlying operations. As reported by AMBCrypto, Gerovich stated that the process has taken longer than initially anticipated, creating uncertainty in the market. The latest developments show that Metaplanet has postponed Japan's first ever perpetual BTC-backed preferred shares due to tough legal and payment system barriers, marking a significant setback in the company's innovative funding strategy.
According to latest reports, Metaplanet posted a net loss of ¥114.49 billion ($725.6 million) for Q1 fiscal 2026, primarily due to the sharp decline in Bitcoin prices that triggered major accounting valuation losses. The company added only 5,075 BTC worth $399 million in Q1, significantly lower than its target accumulation rate. As of the reporting period, Metaplanet held 40,117 BTC, leaving it uncertain whether it could acquire the remaining 60,000 BTC shortfall by December 2026. The losses were largely tied to mark-to-market adjustments on its growing Bitcoin treasury holdings during one of cryptocurrency's weakest quarterly performances, with Bitcoin falling approximately 22% during the quarter.
As reported by AMBCrypto, Strategy has significantly outpaced Metaplanet in Bitcoin accumulation through its STRC token structure. Strategy now owns over 818,000 BTC, with more than 146,000 BTC acquired in 2026 alone, primarily via STRC. The STRC token earns a variable interest of 11.5%, with over $8.5 billion worth of STRC issued so far, compared to Metaplanet's current position. Despite Metaplanet's financial challenges, the company continues to strengthen its Bitcoin reserves while its economic model rapidly evolves. Recent data shows Strategy added 535 BTC worth $43 million from May 4-10, bringing its total holdings to 818,869 BTC, with the company maintaining its position as the world's largest public Bitcoin treasury.
According to AMBCrypto reports, Metaplanet had proposed issuing Mars and Mercury preferred stocks in November to address share dilution concerns and fund Bitcoin purchases. The company had explored similar variable dividend structures to Michael Saylor's bi-monthly dividend approach for Stretch [STRC]. However, Japanese regulations have made it difficult to debut these products, with firms typically paying yields only once or twice per year, requiring reworking and broader engagement. The postponement of Japan's first perpetual BTC-backed preferred shares highlights the challenging market structure and regulatory environment facing innovative Bitcoin-focused financial products in Japan.
