Metaplanet sells and repurchases Bitcoin to boost credit profile
Metaplanet, a Tokyo-listed company, recently sold 10,000 Bitcoin (BTC) to strengthen its credit profile and later repurchased 11,000 BTC at a higher price. The move was part of an effort to demonstrate to rating agencies and fixed-income investors that its Bitcoin reserves can be monetized when obligations come due. By the end of September, Metaplanet's total Bitcoin holdings increased to 44,000 BTC, a net gain of 1,000 BTC for the quarter.
The company sold the Bitcoin at an average price of ¥12.47 million per coin, generating ¥124.7 billion in proceeds. It later repurchased 11,000 BTC at an average price of ¥13.63 million per coin, spending ¥149.9 billion. The difference between the sale and repurchase prices resulted in an adverse price differential of about ¥11.57 billion. Metaplanet emphasized that the transactions were conducted separately to demonstrate its ability to convert Bitcoin into cash when needed.
Metaplanet aims to use its improved credit profile to support a new business model that borrows through bonds, preferred stock, and Bitcoin-backed facilities. The company plans to invest the borrowed funds in higher-yielding assets, retaining the difference as net interest income. This strategy includes investing in securities issued by Bitcoin treasury companies, which will represent about 10% to 15% of total assets, with Bitcoin remaining the dominant holding at 85% to 90%.
The company acknowledges the risks associated with this strategy, including correlation between its core reserves and investments, as well as credit, issuer concentration, currency, and leverage risks. Metaplanet expects its net interest income strategy to have an immaterial effect on its 2026 consolidated results, with the credit-rating effort and future financing terms being the more immediate tests.