Metaplanet boosts Bitcoin holdings with strategic sale and buyback
Metaplanet, a Japanese Bitcoin treasury company, executed a strategic move in the third quarter by first selling 10,000 Bitcoin (BTC) and later repurchasing 11,000 BTC at a higher price. The company sold the initial 10,000 BTC for approximately $789.2 million, with an average price of $78,925 per BTC. It then bought back 11,000 BTC for $948.7 million, at an average price of $86,246 per BTC. This resulted in a net increase of 1,000 BTC, bringing the company's total holdings to 44,000 BTC, valued at around $3.8 billion as of September 30.
The sale was primarily aimed at bolstering Metaplanet's liquidity and strengthening its credit profile. By temporarily holding the proceeds in cash, the company demonstrated its ability to meet interest-bearing debt obligations without actually using the funds to pay off those debts. The subsequent repurchase of BTC at a higher price was not driven by a profit motive but rather to showcase the company's financial capacity and enhance its credit standing.
Metaplanet's total Bitcoin holdings now cost approximately $4.33 billion, with an average cost of $98,454 per BTC. CEO Simon Gerovich stated that the company's goal is to establish Asia's leading Bitcoin financial company. Additionally, Metaplanet announced a new capital allocation plan, intending to allocate 10-15% of its assets to income-generating investments. The income from these investments is expected to cover financing costs and support further Bitcoin purchases.