Metaplanet Boosts Bitcoin Holdings and Launches Income Strategy Amid Shareholder Scrutiny

Metaplanet (MMTPLF) has made significant moves in the Bitcoin market, demonstrating liquidity by selling 10,000 BTC in Q3 for approximately $790 million, then repurchasing 11,000 BTC for about $950 million. This activity increased its total holdings to 44,000 BTC, maintaining its position as the second-largest public Bitcoin treasury company. The company also generated a deferred tax asset estimated at around $97 million from the sale, though this figure awaits auditor confirmation.

Metaplanet introduced a new net interest income strategy, allocating 10% to 15% of its assets to income-generating investments. The plan involves using capital raised from preferred stock, corporate bonds called “BitBonds,” and a Bitcoin-collateralized credit facility. This strategy aims to capitalize on the spread between the yields of these assets and their funding costs. Meanwhile, the company’s Bitcoin options business reported $5.4 million in Q3 revenue, down from $11.1 million in Q2.

Shareholders have expressed concerns over governance issues, particularly regarding CEO Simon Gerovich’s voting rights in MMX Ventures. Metaplanet corrected filings to clarify that Gerovich does not hold majority voting rights, but some investors remain unsatisfied, demanding further transparency. Additionally, the company faced criticism earlier for expanding its Series 10 executive stock option pool, which was later reduced by 41%. Metaplanet’s stock currently trades at 0.80x its Bitcoin NAV, indicating a discount to its Bitcoin holdings.