Saylor Confirms MSTR Will Not Launch Preferred Equity in Japan For 12 Months

TLDR

Saylor confirms MSTR won’t issue preferred equity in Japan in the next 12 months.
Metaplanet plans to launch “Mercury” and “Mars” digital credit instruments in Japan.
Metaplanet uses moving strike warrants for its offerings due to Japan’s market rules.
Saylor encourages broad participation, while Metaplanet focuses on balance sheet strength.

At the Bitcoin MENA conference, a key question about digital credit in Japan was posed by Simon Gerovich, CEO of Metaplanet, to Michael Saylor, executive chairman of MicroStrategy (MSTR). Gerovich asked Saylor directly whether MSTR planned to issue perpetual preferred equity or digital credit in Japan in the near future.

Saylor’s response was clear: “Not in the next twelve months, I will give you a twelve-month head start.” This response effectively gives Metaplanet an advantage in Japan’s underdeveloped perpetual preferred market.

Metaplanet is already making preparations to introduce two new digital credit instruments in Japan, called “Mercury” and “Mars.” These offerings are designed to capitalize on the relatively untapped potential of Japan’s perpetual preferred market. Currently, Japan has only five listed perpetual preferred equities, with All Nippon Airways (ANA) becoming the fifth. Metaplanet plans to introduce the sixth and seventh equities to this market by early 2026.

Metaplanet’s Digital Credit Instruments: Mercury and Mars

The first instrument, called Mercury, will offer a 4.9% yield in yen, significantly higher than what traditional Japanese banks offer. Gerovich noted that Mercury provides about ten times the yield of typical bank deposits, which often yield near zero or roughly 50 basis points. In addition to its higher yield, Mercury also offers convertibility, making it an attractive option for investors seeking better returns.

The second instrument, Mars, is designed to be a short-duration high-yield credit product, mirroring MSTR’s STRC. This approach is intended to cater to investors who prefer higher yields but with a shorter investment horizon. Metaplanet aims to leverage these instruments to establish itself as a major player in Japan’s growing perpetual preferred market, which has seen limited activity up to now.

Regulatory Differences and the Moving Strike Warrant (MSW)

One key difference in Japan’s market compared to the U.S. is that Japan does not allow at-the-market share sales (ATM) like those used by MSTR for their common stock and perpetual preferreds. Instead, Metaplanet will use a different mechanism known as a moving strike warrant (MSW).

This mechanism is in line with Japan’s regulations and allows Metaplanet to issue its digital credit instruments in a way that complies with local rules. The MSW structure ensures that Metaplanet can still offer its digital credit instruments to the market without violating Japanese laws.

Different Views on the Future of Digital Credit

While Metaplanet moves forward with its strategy in Japan, the two leaders also discussed their differing views on the future of digital credit issuances. Saylor expressed his belief that broad participation is important for the market’s growth, pointing to the potential for a dozen issuers to be involved.

On the other hand, Gerovich emphasized the importance of balance sheet strength and argued that Metaplanet would focus on Japan and possibly other parts of Asia for now. He explained that Metaplanet’s approach would be more selective, prioritizing regional market focus over the sheer number of issuers.

Michael Saylor Confirms MSTR Will Not Launch Preferred Equity in Japan For 12 Months

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