As we enter our next phase of growth, a key question is why preferred shares are a more powerful tool than issuing common stock. The answer lies in how we can continue increasing Bitcoin per share without depending on equity issuance. When a company raises common equity, it increases its Bitcoin holdings but also the number of shares. That dilution can slow Bitcoin per share growth. Preferred shares allow us to raise capital at a fixed dividend rate without increasing the number of common shares. To understand the impact, we look at mNAV, which shows how the market values the company’s enterprise value relative to its Bitcoin holdings. Our objective is to increase Bitcoin per share while using capital efficiently. When Bitcoin appreciates faster than the cost of capital, that difference compounds into greater Bitcoin per share and the benefit accrues to the common shareholders. Here is the simple math behind it: Value of Bitcoin = (1 + Bitcoin annual growth)¹⁰ Preferred obligation = (1 + Dividend rate)¹⁰ Equivalent mNAV = (1 + Bitcoin annual growth)¹⁰ ÷ (1 + Dividend rate)¹⁰ If Bitcoin compounds at 30% a year and the preferred dividend is 6%, then (1.30¹⁰) ÷ (1.06¹⁰) = 8.6 times. That means issuing 6% preferred shares would create the same long term effect as issuing new equity today at an mNAV level of 8.6x. In simple terms, preferred shares make it possible to expand Bitcoin holdings without dilution, and grow bitcoin per share irrespective of mNAV. Metaplanet today has one of the strongest balance sheets in Japan with virtually no debt and growing Bitcoin reserves. Our long term vision is to transform Japan’s credit markets by introducing yield instruments backed by Bitcoin.