Metaplanet Sells 10,000 Bitcoin in Third Quarter, Rebuys 11,000 to Raise Holdings to 44,000 BTC
Summary
- Metaplanet said it raised its holdings to 44,000 BTC in the third quarter through selling 10,000 Bitcoin and then repurchasing 11,000.
- Metaplanet said it used funds from the Bitcoin sale to repurchase Bitcoin without actually repaying debt, as it pursues a liquidity demonstration, obtaining a credit rating, and expanding fundraising through bonds and preferred shares.
- Metaplanet said its asset-management policy is to keep 85% to 90% of assets in Bitcoin, supported by a potential deferred tax asset, BitBonds, Bitcoin-backed credit lines, a net interest income strategy, and a Bitcoin options revenue business.
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Metaplanet, a Japan-based corporate Bitcoin treasury company, increased its holdings to 44,000 BTC after selling 10,000 Bitcoin in the third quarter and later buying back 11,000.
The Block reported on October 5 that Metaplanet sold 10,000 Bitcoin in the third quarter for 124.7 billion yen, about $790 million, and then repurchased 11,000 for 149.9 billion yen, about $950 million. Its net holdings therefore rose by 1,000 BTC.
Metaplanet said proceeds from the 10,000-Bitcoin sale exceeded the outstanding principal on its interest-bearing liabilities, including bonds and borrowings. The company did not actually repay the debt, however, and instead maintained its existing obligations before later repurchasing Bitcoin.
The transaction was meant to demonstrate liquidity, showing the company's ability and willingness to convert Bitcoin into cash when needed. Metaplanet also plans to pursue a credit rating while broadening its fundraising channels through bonds and preferred shares.
Because the sale price was below its original purchase cost, the transaction generated a capital loss under U.S. tax rules. Metaplanet preliminarily estimated that this could result in a deferred tax asset of about $97 million. The figure has not yet been confirmed by an auditor. The capital loss could be used in the future to offset capital gains generated in the U.S.
Metaplanet also disclosed a new net interest income strategy. The company said it plans to invest funds raised through perpetual preferred shares, corporate bonds called BitBonds, and Bitcoin-backed credit lines into assets that generate stable returns, seeking to earn the spread between investment yields and funding costs.
Under the new asset-management policy, about 85% to 90% of total assets will remain in Bitcoin. The remaining 10% to 15% will be used for the net interest income strategy, mergers and acquisitions, and asset-management businesses. Its Bitcoin options revenue business posted 848.4 million yen, or about $5.4 million, in third-quarter revenue. Revenue for January through September totaled 5.57 billion yen, or about $35.3 million.
Metaplanet now holds 44,000 BTC, the second-largest Bitcoin treasury among publicly traded companies after Strategy, according to Bitcoin Treasuries.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.