Metaplanet executed an unusual round-trip bitcoin transaction during the third quarter, selling 10,000 BTC for $789.5 million before purchasing 11,000 BTC for $949 million. The strategy left the company with 44,000 BTC as of September 30, while demonstrating to creditors that its bitcoin treasury can be liquidated when needed.
The sale was designed to strengthen Metaplanet's credit profile and expand its access to bonds, preferred shares, and other financing options. By converting a portion of its bitcoin holdings to cash, the company provided tangible proof to credit investors that the asset on its balance sheet can be monetized to meet financial obligations if required.
The transactions generated a preliminary deferred tax asset of approximately $97 million for Metaplanet's subsidiaries, though auditors have not yet confirmed its recognition.
New Capital Framework
Alongside the liquidity demonstration, Metaplanet revised its capital-allocation strategy. Bitcoin is targeted to represent 85% to 90% of total assets, with the remaining 10% to 15% allocated to strategic investments, M&A, income-producing securities, and asset-management activities. Bitcoin-related borrowings will generally remain below 10% of BTC net asset value.
Focus on Cash Flow Generation
Metaplanet is implementing a Net Interest Income Strategy aimed at generating recurring cash flow through a spread between funding costs and returns from income-generating investments. The company stated that this approach is intended to improve credit quality, increase financing capacity, and fund additional bitcoin purchases.
CEO Simon Gerovich emphasized that the company's strategy extends beyond simple bitcoin accumulation, with the goal of becoming a leading bitcoin financial institution through expanding reserves, operating businesses, access to capital, and credit infrastructure.
