Metaplanet Boosts Bitcoin Holdings After Strategic Sale and Repurchase

Metaplanet, one of the largest corporate holders of bitcoin, sold 10,000 BTC during the third quarter of 2023, only to repurchase an even larger amount shortly after. The company converted the BTC, worth approximately $790 million at the time, into cash. It then bought back 11,000 BTC for nearly $950 million, increasing its total holdings by 1,000 BTC to reach 44,000 BTC by September 30.

The strategic move was intended to demonstrate to credit-rating agencies and fixed-income investors that Metaplanet’s bitcoin reserves are highly liquid. The cash generated from the sale exceeded the company’s total liabilities, which stood at around $775 million. However, the debts were not repaid. Instead, the sale and repurchase cycle was designed to showcase the company’s ability to cover financial obligations with its BTC holdings if necessary.

As part of a broader initiative to secure a credit rating and expand financing options, Metaplanet’s actions highlighted its commitment to integrating bitcoin into its financial strategy. The company acknowledged that selling at a lower price and repurchasing at a higher level resulted in a tax capital loss, potentially creating a deferred tax asset of approximately $97 million. This figure remains preliminary and unaudited.

Additionally, Metaplanet recently transferred 2,100 BTC and $2.5 million from Super League Enterprise to Superplanet, a US Bitcoin treasury platform, further solidifying its investment in the cryptocurrency ecosystem.