Metaplanet launches BitBonds with ¥200M private sale
Metaplanet launched a continuous bond issuance program called BitBonds on Aug. 13 and completed its first four private placements, raising about 200 million yen, or roughly $1.3 million.
Summary
- Metaplanet launched BitBonds after completing four private bond sales totaling approximately 200 million yen Thursday.
- The unsecured senior bonds mature in roughly three years and pay annual interest between 4%–4.3%.
- Metaplanet Securities distributed the bonds to eligible individuals and companies under Japan’s private placement regime.
- Future BitBond issuance will depend on funding needs, market conditions and investor demand, Metaplanet said.
- Metaplanet still holds 43,000 Bitcoin after CEO Simon Gerovich denied selling assets during custody transfers.
The Tokyo listed Bitcoin treasury company said in its disclosure that its 21st through 24th series unsecured ordinary bonds carry annual interest rates of about 4% to 4.3% and mature in roughly three years.
The bonds were distributed through wholly owned Metaplanet Securities under Japan’s small number private placement framework. Solicitation began in late July and has now closed. Future series will be priced separately according to funding needs, market conditions and investor demand.
Metaplanet BitBonds add fixed rate debt to funding mix
Metaplanet said BitBonds will sit alongside common shares, equity linked instruments and preferred shares as a recurring funding channel. The program lets the company issue senior debt as needed rather than depend on a single large bond transaction. Metaplanet “intends” to prepare for public bond offerings if issuance expands, but no such offering has been approved.
The launch follows Metaplanet’s July acquisition of Siiibo Securities, which was renamed Metaplanet Securities. As previously reported, the transaction gave Metaplanet a regulated securities platform for Bitcoin related financial products. Metaplanet’s latest results say the platform had supported more than 100 bond issuances by over 40 issuers before joining the group.
The first BitBonds are not secured by Bitcoin
The inaugural securities differ from earlier descriptions of potential Bitcoin backed bonds. Metaplanet’s filing states that these BitBonds are unsecured, unguaranteed and unrated. No security interest has been granted over Bitcoin or other group assets, and principal is not protected. Investors instead rely on Metaplanet’s overall ability to repay.
Bitcoin nevertheless remains relevant to the credit risk because it is Metaplanet’s principal asset. The company warned that its financial condition and ability to meet principal and interest obligations could be affected by Bitcoin price movements. The bonds also carry transfer restrictions, while liquidity before maturity is not guaranteed.
As previously reported, Metaplanet had outlined plans for BitBonds yielding roughly 4% to 6%, with longer term ambitions involving tokenization and stablecoin settlement. The live program starts more narrowly with privately placed corporate bonds paying 4% to 4.3%. No tokenized settlement feature was announced for the inaugural issuance.
Same day results show the balance sheet risk
Metaplanet’s Aug. 13 interim results put that credit exposure in context. First half net sales rose 133.7% year over year to 4.94 billion yen and operating profit increased 136.3% to 3.33 billion yen. However, Metaplanet posted a 182.77 billion yen net loss, primarily because of a 184.30 billion yen noncash Bitcoin valuation loss.
At June 30, Metaplanet held 43,000 BTC and reported total assets of 418.18 billion yen and net assets of 340.88 billion yen. It had also drawn $414 million from a $500 million Bitcoin collateralized credit facility. Unlike the new BitBonds, Bitcoin pledged under that facility gives the lender priority rights over the collateral.
CEO Simon Gerovich separately confirmed Thursday that Metaplanet still owns 43,000 BTC after 5,014 BTC moved between company custodial addresses. As previously reported, Gerovich confirmed no Bitcoin was sold during the custody transfers.
What happens next for BitBonds
Metaplanet said future BitBond series may differ in size, maturity and interest rate. The company warned that future offerings “may also be modified, postponed or cancelled” depending on its decisions and market conditions. Metaplanet Securities is expected to handle solicitation, allocations and administration while applying its investor eligibility standards.
Metaplanet shares closed Thursday at 223 yen, up 0.9%, but the BitBonds disclosure was published after the Tokyo market closed.
The regular session therefore did not capture investor reaction to the announcement. The next developments will be additional private bond series and any steps toward a registered public offering.
