Metaplanet sold 10,000 BTC then repurchased 11,000 BTC in Q3

What happened

Metaplanet disclosed that it sold 10,000 BTC during the third quarter for roughly $790 million and then bought 11,000 BTC for around $950 million.

The transactions left the company with a net increase of 1,000 BTC. Metaplanet ended the quarter holding 44,000 BTC, and a report citing BitcoinTreasuries said that total stood as of September 30.

Metaplanet said proceeds from the 10,000 BTC sale exceeded the outstanding principal of its bonds, borrowings and other interest-bearing liabilities. The company described the operation as a demonstration of liquidity.

The sale proceeds stayed in cash, and the company did not use the funds to repay those obligations, which remain outstanding under their original terms.

Why it matters

Bitcoin treasury companies face questions from creditors and rating agencies about whether they can turn BTC into cash when needed. Metaplanet said it answered that question by selling 10,000 BTC and then buying 11,000 BTC back.

The company ended with 44,000 BTC and ranks as the world's second-largest publicly listed Bitcoin treasury company, behind Strategy. It also plans to put roughly 10% to 15% of its assets into strategic investments outside Bitcoin, including income-generating opportunities.

Metaplanet's Net Interest Income Strategy focuses primarily on preferred securities issued by other Bitcoin treasury companies. The firm plans to dedicate roughly 10% to 15% of its total assets to the strategy, aiming to generate returns that exceed its financing costs.

What the data shows

By the end of the quarter, Metaplanet's liabilities after accounting for cash and dollar-backed stablecoins totaled ¥122.4 billion, compared with ¥124.7 billion in proceeds from the Bitcoin sale.

The company said the sale generated a capital loss under U.S. tax rules. It estimates that the loss could translate into a deferred tax asset of roughly $97 million across subsidiaries of its U.S. holding company.

Metaplanet sold 10,000 BTC for approximately ¥124.7 billion, or around $790 million, and purchased 11,000 BTC for roughly ¥149.9 billion, equivalent to around $950 million.

Background

Metaplanet is a Japanese-listed company. CEO Simon Gerovich said the company wants to become the leading Bitcoin financial company in Asia.

The company has also rolled out a Net Interest Income Strategy focused primarily on preferred securities issued by other Bitcoin treasury companies.

What is still unclear

• The reports do not state the exact dates of the 10,000 BTC sale and 11,000 BTC purchase within the third quarter.
• The reports do not give the per-coin prices for either trade.
• Metaplanet estimates a potential deferred tax asset, but the reports do not state whether it has been recognized.

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