Metaplanet adds net 1,000 bitcoin in Q3 after sell-and-rebuy, now holds 44,000 BTC
In brief
- Metaplanet held 44,000 BTC ($3.8 billion) as of Sept. 30, a net Q3 gain of 1,000.
- Metaplanet sold 10,000 BTC at about $78,925 each, then bought back 11,000 at $86,246.
- The company says the sale was meant to show liquidity. It didn't repay its debt.
- A new strategy targets preferred securities issued by other bitcoin treasury companies.
- Options-based income revenue fell 51% from Q2 to about $5.4 million.
A sale, then a bigger buy
Metaplanet sold 10,000 BTC for approximately $789.2 million, an average of $78,925 per coin, according to the company's figures as reported by CoinDesk. It then purchased 11,000 BTC for $948.7 million (an average of $86,246).
So it bought back at higher prices than it sold.
The company frames the move around its balance sheet. Metaplanet said it temporarily held the proceeds in cash to show it could cover its outstanding interest-bearing debt, but it didn't actually repay those obligations. Its total holdings now carry a cost basis of approximately $4.33 billion, or $98,454 per BTC, per the company's figures.
Earning income from other treasury firms
CEO Simon Gerovich said the announcements reflected ambitions beyond accumulating bitcoin.
“Our objective has been to build the leading Bitcoin financial company in Asia,” he said.
Alongside the Q3 update, Metaplanet introduced a Net Interest Income Strategy that targets investments mainly in preferred securities issued by bitcoin treasury companies. It plans to allocate roughly 10% to 15% of total assets to these positions. The goal, the company said, is returns above its funding costs, which it'd use to service obligations and fund more bitcoin purchases.
Options revenue slides
The existing income business shrank. Metaplanet's options-based Bitcoin Income Generation unit reported approximately $5.4 million in Q3 revenue, down 51% from Q2 and 65% year over year, the company said. Nine-month revenue reached approximately $35.2 million, and it's now the eighth consecutive quarter the business has generated revenue.
Metaplanet shares closed 2% higher on Monday at 297 yen ($1.88).
Frequently asked questions
Why did Metaplanet sell bitcoin and then buy it back?
Metaplanet said the sale and repurchase was designed to demonstrate liquidity and strengthen its credit profile. It temporarily held the sale proceeds in cash to show it could cover its outstanding interest-bearing debt, but it didn't repay those obligations. It then bought back 11,000 BTC at higher prices than it sold.
What is Metaplanet's Net Interest Income Strategy?
It's a new strategy that targets investments mainly in preferred securities issued by bitcoin treasury companies. Metaplanet plans to allocate approximately 10% to 15% of its total assets to it, seeking returns above its funding costs to service obligations and fund more bitcoin purchases.
