Norway’s Sovereign Wealth Fund Backs Metaplanet’s Bitcoin Strategy

Bitcoin Magazine

Norway’s Sovereign Wealth Fund Backs Metaplanet’s Bitcoin Strategy

Norway’s Norges Bank Investment Management (NBIM), the manager of the country’s $1.7 trillion sovereign wealth fund, has voted in favor of all five management proposals at Metaplanet’s upcoming Extraordinary General Meeting (EGM) on Dec. 22, endorsing the firm’s bitcoin treasury strategy.

NBIM, which held roughly a 0.3% stake in Metaplanet as of June 30, disclosed its vote via Dylan LeClair, Metaplanet’s director of bitcoin strategy.

The five proposals are designed to expand the company’s capital flexibility and support non-dilutive bitcoin accumulation.

One proposal would reduce capital stock and capital reserves, allowing funds to be transferred to surplus. This would enable dividends, share buybacks, or bitcoin acquisitions without increasing the number of outstanding common shares.

Another proposal seeks to increase the company’s authorized share count, including the introduction of new preferred share classes. Metaplanet said this would allow it to raise capital in the future to fund bitcoin purchases while preserving flexibility in its capital structure.

Metaplanet’s shares proposal

A key component of the plan is the introduction of perpetual preferred shares. The proposed Class A preferred shares, branded as MARS, would offer variable monthly dividends and rank senior in the capital structure.

The company also plans to introduce perpetual Class B preferred shares, known as MERCURY, which would feature fixed quarterly dividends, conversion options, and cash redemption features. 

Metaplanet is seeking authorization to issue MERCURY shares to institutional investors as part of a planned $150 million third-party allotment to fund additional bitcoin purchases.

Metaplanet said the preferred share structure is intended to attract long-term institutional capital while limiting dilution to common shareholders.

The Tokyo-listed firm has increasingly positioned itself as a corporate bitcoin treasury vehicle, drawing comparisons to U.S. firms that have adopted similar strategies.Metaplanet’s common shares are up about 8% year-to-date. 

Last month, Metaplanet, was the world’s fourth-largest corporate holder of bitcoin with 30,823 BTC, and continually says they are planning new capital toward additional bitcoin purchases, with the remainder directed to income-generating bitcoin strategies and the redemption of outstanding corporate bonds.

In early November, Metaplanet drew $100 million from its $500 million credit facility, secured by just 3% of its 30,823 BTC holdings, to fund further Bitcoin purchases, expand its income-generating options business, and potentially repurchase shares.

The flexible, no-fixed-maturity loan allows repayment at any time and is tied to U.S. benchmark rates, though the lender remains undisclosed.

This post Norway’s Sovereign Wealth Fund Backs Metaplanet’s Bitcoin Strategy first appeared on Bitcoin Magazine and is written by Micah Zimmerman.