Metaplanet Sells 10,000 Bitcoin in Third Quarter, Rebuys 11,000 to Raise Holdings to 44,000 BTC
Summary
- Metaplanet said it increased its holdings to 44,000 BTC in the third quarter through the sale of 10,000 Bitcoin followed by the repurchase of 11,000.
- Metaplanet said the funds raised from the Bitcoin sale were followed by a buyback without any actual debt repayment, and described the trade as aimed at demonstrating liquidity.
- Metaplanet said it plans to generate returns through the potential for a deferred tax asset from capital losses and a net interest income strategy built on BitBonds and Bitcoin-backed credit lines.
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Japan-based Bitcoin treasury company Metaplanet sold 10,000 Bitcoin in the third quarter and then bought back 11,000, raising its holdings to 44,000 BTC.
The Block reported on Oct. 5 that Metaplanet sold 10,000 Bitcoin in the third quarter for 124.7 billion yen, or about $790 million, before repurchasing 11,000 Bitcoin for 149.9 billion yen, or about $950 million. Its net holdings increased by 1,000 BTC.
Metaplanet said the proceeds from the 10,000-Bitcoin sale exceeded the outstanding principal on its interest-bearing liabilities, including bonds and borrowings. It did not actually repay that debt, however, and instead maintained its existing obligations before buying Bitcoin again.
The company described the transaction as a way to demonstrate liquidity, showing it has both the ability and the willingness to convert Bitcoin into cash when needed. Metaplanet also plans to seek a credit rating while expanding its funding channels through instruments including bonds and preferred shares.
Because the sale price was below its original acquisition 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, though the figure has not yet been confirmed by auditors. The capital loss could later be used to offset capital gains generated in the U.S.
Metaplanet also unveiled a new net interest income strategy on Oct. 5. The company plans to invest funds raised through perpetual preferred shares, corporate bonds called BitBonds, and Bitcoin-backed credit lines into assets that it expects will generate stable returns. It aims to capture the spread between investment yields and funding costs.
Under the new asset-allocation 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 operations. A revenue business using Bitcoin options generated 848.4 million yen, or about $5.4 million, in third-quarter revenue. Revenue for the January-September period totaled 5.57 billion yen, or about $35.3 million.
Metaplanet now holds 44,000 BTC, the second-largest stash among listed companies after Strategy, according to Bitcoin Treasuries.
