Metaplanet, a Tokyo-listed treasury company, sold 10,000 bitcoin and repurchased 11,000 during the third quarter, resulting in a net gain of 1,000 BTC that brought its total holdings to 44,000 bitcoin as of September 30.
The transaction was structured to address a key concern among rating agencies and credit investors: whether a Bitcoin company would actually sell its holdings to meet financial obligations. Rather than make assurances, Metaplanet chose to demonstrate its ability and willingness through an actual sale.
The company sold an amount of Bitcoin exceeding the full outstanding principal of its bonds, borrowings, and other interest-bearing liabilities, then held the proceeds in cash without repaying the debts. At quarter end, its liabilities net of cash and dollar stablecoins stood at ¥122.4 billion, against sale proceeds of ¥124.7 billion.
Chief executive Simon Gerovich stated that rating agencies and credit investors question whether a Bitcoin company can convert its Bitcoin to cash and whether it will do so when obligations come due. "We answered by doing it," Gerovich said.
Cost of the Strategy
The round-trip transaction came at a cost. Metaplanet sold at an average price of ¥12.47 million per BTC and repurchased at ¥13.63 million per BTC, approximately 9 percent higher. The net 1,000 BTC cost ¥25.2 billion against repurchases priced near ¥13.6 million each.
Because the coins sold had been purchased above the sale price, the disposal produced a capital loss for U.S. tax purposes. Metaplanet estimates a deferred tax asset of approximately $97 million at subsidiaries of its U.S. holding company, though this figure is preliminary and unaudited and may not be recognized.
Broader Strategy
Metaplanet said it now intends to pursue a credit rating. The company's Bitcoin Income Generation business has recorded revenue for eight consecutive quarters. Gerovich indicated that the company's strategy "was never simply to accumulate Bitcoin" and announced a Net Interest Income Strategy designed to create recurring income streams and lower its effective cost of capital.
The third quarter marked a slowdown in Bitcoin accumulation. Metaplanet added 2,823 BTC in the second quarter, and the third quarter's net addition was approximately one-third of that.
