Metaplanet sells 10,000 BTC, buys back 11,000 in bid for a credit rating
In brief
- Metaplanet sold 10,000 BTC at ¥12.47 million each, then bought 11,000 at ¥13.63 million.
- Metaplanet ended Sept. 30 with 44,000 BTC, a net gain of 1,000.
- Metaplanet says the round trip shows its reserves can become cash as it seeks a credit rating.
- Metaplanet estimates a possible $97 million deferred tax asset, still subject to auditor review.
- A planned Net Interest Income Strategy would put 10% to 15% of assets outside Bitcoin.
Selling first, buying back later
Metaplanet said it sold 10,000 BTC at an average of ¥12.47 million per coin, generating ¥124.7 billion. It later bought 11,000 BTC at an average of ¥13.63 million, spending ¥149.9 billion. That's a net increase of 1,000 BTC for the quarter.
Why the higher buyback price? Metaplanet said it reflected Bitcoin's rise between the two transactions.
By CryptoSlate's calculation from the company's figures, the roughly ¥1.16 million gap per coin implies an adverse price differential of about ¥11.57 billion on the 10,000 BTC needed to replace the original position.
Why sell at all
The company said it didn't run the trades as a simultaneous exchange. It sold first, held the cash and bought back later. The idea (per Metaplanet) was to show its reserves could be converted into cash rather than relying on Bitcoin's market liquidity alone.
That matters for credit. Metaplanet said rating agencies and fixed-income investors can discount Bitcoin's liquidity value if an issuer is unwilling to sell when required, and it said the cash it raised exceeded the outstanding principal on its interest-bearing debt.
There's a tax angle too. Metaplanet estimates subsidiaries of its US holding company could recognize a deferred tax asset of about $97 million from a capital-loss carryforward created by the sale. It's still subject to closing procedures and auditor review, and the company said the asset may end up smaller or not be recognized at all. If it is recognized, Metaplanet said it could offset some or all of the price gap and transaction costs.
Beyond accumulation
Metaplanet plans to seek a credit rating and use a stronger financing profile for a new business that borrows and invests in higher-yielding assets. Under its newly announced Net Interest Income Strategy, it plans to raise capital through perpetual preferred stock, corporate bonds called BitBonds and Bitcoin-collateralized credit facilities. It would then invest in assets yielding more than its all-in financing costs and keep the difference as net interest income.
The company expects preferred securities from Bitcoin treasury companies (and similar issuers) to be among its main targets, in an allocation it sees at about 10% to 15% of total assets. Bitcoin would stay at roughly 85% to 90%.
Metaplanet said any improvement in credit access won't just fund more Bitcoin buys.
Frequently asked questions
Why did Metaplanet sell 10,000 Bitcoin and then buy it back?
Metaplanet said the sequence was meant to show its reserves could actually be converted into cash rather than relying on Bitcoin's market liquidity alone. The company said rating agencies and fixed-income investors can discount Bitcoin's liquidity value if an issuer is unwilling to sell when required, and it plans to seek a credit rating.
How much did Metaplanet pay to buy its Bitcoin back?
According to preliminary, unaudited figures, Metaplanet sold 10,000 BTC at an average of ¥12.47 million per coin and later bought 11,000 BTC at an average of ¥13.63 million, spending ¥149.9 billion. CryptoSlate calculated an adverse price differential of about ¥11.57 billion on the 10,000 BTC replaced.
What is Metaplanet's Net Interest Income Strategy?
It's a plan to raise capital through perpetual preferred stock, BitBonds and Bitcoin-collateralized credit facilities, then invest in assets yielding more than Metaplanet's all-in financing costs. The company expects that allocation to be about 10% to 15% of total assets, with Bitcoin staying at roughly 85% to 90%.
