Metaplanet Sells and Repurchases Bitcoin to Boost Credit Profile
Metaplanet, a Tokyo-listed company, sold 10,000 Bitcoin (BTC) during the third quarter to strengthen its credit profile. The company converted the BTC into cash to exceed the outstanding principal of its bonds, borrowings, and other interest-bearing debt. It later repurchased 11,000 BTC at a higher price, ending September 30 with a net gain of 1,000 BTC for the quarter.
The transaction was part of a broader strategy to convince rating agencies and fixed-income investors that Metaplanet's Bitcoin reserves can be monetized when obligations come due. The company plans to seek a credit rating and use a stronger financing profile to support a new business that borrows through bonds, preferred stock, and Bitcoin-backed facilities before investing in higher-yielding assets.
The liquidity demonstration came at a cost. Bitcoin's price rose between the sale and repurchase, leaving Metaplanet paying substantially more to rebuild its position. The company disposed of 10,000 BTC at an average price of ¥12.47 million per coin, generating ¥124.7 billion in proceeds. It later purchased 11,000 BTC at an average price of ¥13.63 million per coin, spending ¥149.9 billion. The difference implied an adverse price differential of about ¥11.57 billion on the 10,000 BTC needed to replace the original position.
Metaplanet conducted the transactions separately rather than as a simultaneous exchange to demonstrate that its reserves could actually be converted into cash. The company aims to use any improvement in credit access for more than financing additional Bitcoin purchases. Its newly announced Net Interest Income Strategy plans to raise capital through instruments including perpetual preferred stock, corporate bonds known as BitBonds, and Bitcoin-collateralized credit facilities.