Metaplanet wants to become a financial institution around Bitcoin with 85 to 90% of its assets in BTC

Bitcoin in reserve, income in reinforcement. Metaplanet wants to become a financial institution built around Bitcoin. On October 5, the Japanese company revised its allocation policy: 85% to 90% of its assets in BTC, and 10% to 15% in strategic investments.

It is also launching a net interest income strategy to support its development and future purchases.

Key Points

Metaplanet aims for an allocation of 85% to 90% of its assets to bitcoins.

Borrowing linked to BTC must generally remain below approximately 10% of the value of the reserves.

Issuances of common shares will be selective, with an mNAV greater than 1.

The group announces 44,000 BTC as of September 30, after a net increase of 1,000 BTC in the third quarter.

Bitcoin: Metaplanet controls its financing

Bitcoin purchases will be primarily funded by permanent capital, in the form of common stock and perpetual preferred stock. Debt linked to Bitcoin must generally remain below approximately 10% of the market value of the BTC held. This benchmark remains sensitive to the price: at constant debt, a halving of bitcoin would mechanically double the ratio.

For ordinary shares, Metaplanet sets another condition: an mNAV greater than 1.0x, accompanied by a favorable assessment of the operation for existing shareholders. The ratio used compares the enterprise value to the market value of the bitcoins held, and not simply the market capitalization to the treasury. Exceeding this threshold therefore does not guarantee, in itself, an increase in the number of bitcoins per share.

This discipline is accompanied by a demonstration of liquidity. According to Simon Gerovich, Metaplanet sold and then repurchased bitcoins in the third quarter, for a net gain of 1,000 BTC. The cash temporarily held exceeded the total principal of its interest-bearing debts.

The message is aimed in particular at credit investors: reserves can be mobilized to honor commitments. As of September 30, the group thus claims 44,000 BTC and the second place in the world among listed Bitcoin treasury companies.

Metaplanet wants to work its strategic pocket

The 10% to 15% of strategic investments will serve three activities: acquisitions of financial platforms, income-generating securities and asset management. The development of Metaplanet Securities and the Superplanet operation, still pending, are part of this ambition.

This pocket will have separate financing, with attention paid to matching deadlines between resources and commitments. The group favors debt and preferred securities to limit the use of ordinary shares.

The new Net Interest Income Strategy is based on one principle: investing in assets whose expected return, after taking credit risk into account, exceeds the total cost of financing. The resources may come from credits guaranteed by bitcoins, perpetual preferred securities or bonds.

This income must supplement the option premiums already collected, cover interest and dividends, then contribute to new purchases of BTC. The aim is to reduce the need to issue ordinary shares, without removing credit or financing risks.