CoinDesk
Metaplanet added a net 1,000 BTC in the third quarter, bringing its holdings to 44,000 BTC, valued at $3.8 billion as of Sept. 30. The Japanese firm sold 10,000 BTC for about $789.2 million, then bought 11,000 BTC for $948.7 million. The sale averaged $78,925 per coin; the repurchases averaged $86,246.
Why it matters
The transactions were designed to demonstrate liquidity and strengthen Metaplanet's credit profile. The company temporarily held the sale proceeds in cash to show it could cover interest-bearing debt, but did not repay those obligations. Its total bitcoin holdings have a cost basis of about $4.33 billion, or an average of $98,454 per BTC.
CEO Simon Gerovich said the company's ambitions go beyond accumulating bitcoin, describing its objective as building Asia's leading Bitcoin financial company. Metaplanet also introduced a Net Interest Income Strategy, targeting investments mainly in preferred securities issued by bitcoin treasury companies. It plans to allocate about 10% to 15% of total assets to those investments, seeking returns above its funding costs to service obligations and support further bitcoin purchases.
Market impact
The strategy adds an income-generating layer to Metaplanet's bitcoin treasury model, while leaving the company exposed to the price of BTC and the cost of its financing. Its options-based Bitcoin Income Generation business reported about $5.4 million in Q3 revenue, down 51% from Q2 and 65% year over year. Nine-month revenue was about $35.2 million, marking eight consecutive quarters of revenue generation. Metaplanet shares closed 2% higher at 297 yen ($1.88).
Frequently asked questions
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How did Metaplanet's Q3 bitcoin sales and purchases compare?
Metaplanet sold 10,000 BTC at an average of $78,925, then purchased 11,000 BTC at an average of $86,246, for a net increase of 1,000 BTC.
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Why did Metaplanet temporarily hold its bitcoin sale proceeds in cash?
The company said the cash demonstrated its ability to cover outstanding interest-bearing debt and was intended to strengthen its credit profile. It did not repay the debt.
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What is Metaplanet's Net Interest Income Strategy?
It targets investments mainly in preferred securities issued by bitcoin treasury companies, seeking returns above Metaplanet's funding costs.
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How much of its assets does Metaplanet plan to allocate to preferred securities?
Metaplanet plans to allocate about 10% to 15% of total assets to the strategy's investments.
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How did Metaplanet's Bitcoin Income Generation revenue perform in Q3?
The options-based business reported about $5.4 million in Q3 revenue, down 51% from Q2 and 65% year over year. Nine-month revenue reached about $35.2 million.
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