In the third quarter, Japan's Metaplanet sold 10,000 BTC and subsequently acquired 11,000 BTC, resulting in a net increase of 1,000 BTC, bringing the company's total reserves to 44,000 BTC as of September 30. This information was disclosed in their report published on October 5.
Prior to this announcement, the last reported figure was 43,000 BTC. On July 2, Metaplanet had reported the purchase of 2,823 BTC and had not disclosed any further acquisitions since then.
Metaplanet Bitcoin Reserves. Source: BitcoinTreasuries.Reasons Behind Metaplanet's Bitcoin Sales
The company explained that these transactions were aimed at testing its ability to convert a significant portion of its Bitcoin reserves into cash.
According to Metaplanet, the revenue generated from the sale of 10,000 BTC exceeded the total amount of the group's debts and interest obligations.
This strategy aims to demonstrate the liquidity of its primary reserve asset, enhance its borrowing profile, and secure an official credit rating. Metaplanet also associates this with expanding its capital-raising avenues, particularly through corporate bonds and preferred shares.
Following the sale, the firm purchased 11,000 BTC, ensuring that its Bitcoin holdings did not decrease.
Additionally, Metaplanet mentioned the intention to realize a carryover capital loss for tax purposes in the U.S., with the final impact to be determined after the closure of the reporting period and audit.
Metaplanet Adjusts Its Financing Model
Historically, the company had been increasing its reserves mainly through equity issuance, international placements, and warrants. It also utilizes a Bitcoin-collateralized credit line and sells secured put options.
Concerns regarding dilution of shares have already been a topic of shareholder criticism. At the end of August and beginning of September, investors discussed the management option program and its effect on the number of coins per share.
On September 11, Metaplanet reduced the potential pool of shares under this program by 41%.
Alongside its quarterly report, the company updated its capital distribution policy. Metaplanet plans to maintain approximately 85-90% of its assets in Bitcoin and primarily finance asset purchases through permanent capital.
The remaining 10-15% will be allocated to M&A activities, income-generating assets, and asset management, with this portion to be funded through bonds, loans, and preferred shares, avoiding dilution of common stock.
Loans for Bitcoin purchases will continue to be capped at around 10% of the net value of crypto assets.
Metaplanet Continues to Build Reserves
Metaplanet designated Bitcoin as its primary reserve asset in April 2024. By the end of the first quarter of 2026, its inventory reached 40,177 BTC, and by July, it had increased to 43,000 BTC.
The company remains the largest publicly traded corporate holder of Bitcoin in Asia.
Under its 555 Million Plan, Metaplanet aims to accumulate 100,000 BTC by the end of 2026, and 210,000 BTC by the end of 2027, which would represent approximately 1% of the maximum supply of digital gold.
Metaplanet is also expanding its presence outside of Japan. In August, it entered into an agreement with American Super League Enterprise, in which the Japanese firm will contribute 2,100 BTC from its reserves along with $2.5 million.
After the deal closes, expected in the fourth quarter, the company will be rebranded as Superplanet, and Metaplanet will hold about 95.7% of the common shares.
It is worth noting that in May, the "Japanese Strategy" reported a net loss of 114.5 billion yen ($725.6 million) for the first quarter, attributed to a decline in Bitcoin prices.
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