The first BitBonds offering consists of unsecured debt paying annual interest of between 4% and 4.3%, but investors remain exposed to Metaplanet’s credit risk and its significant bitcoin exposure.
Japanese bitcoin treasury company Metaplanet (3350) has rolled out a new recurring debt program named “BitBonds,” with its inaugural sale comprising four privately placed bond series worth approximately 200 million yen ($1.3 million).
The Tokyo-listed firm said the unsecured senior bonds have a maturity of around three years and offer annual coupons ranging from 4% to 4.3%. The subscription process began in late July and was completed by Aug. 13, according to the company.
Metaplanet plans to use BitBonds alongside common equity, equity-linked securities and preferred shares as part of its broader financing strategy. Additional bond offerings will depend on its capital requirements, market conditions and investor demand. The company also said it could pursue registered public bond offerings in the future.
The bonds differ from Metaplanet’s shares, whose value can move alongside the company’s bitcoin holdings. BitBonds provide fixed interest payments and repayment of principal, subject to Metaplanet’s creditworthiness. However, they are unsecured, unrated and do not offer principal protection, leaving holders vulnerable to the company’s financial performance and bitcoin price volatility.
The securities also include restrictions on transfers, while investors are not assured of being able to sell them before maturity.
The initial BitBonds were sold by Metaplanet Securities, the company’s wholly owned subsidiary, to individual and corporate investors under Japan’s small-number private placement rules. The transaction underscores Metaplanet’s efforts to establish itself in Japan’s yen-based debt market.
The announcement followed CEO Simon Gerovich’s denial of reports that Metaplanet had sold bitcoin. He explained that the movement of 5,014 BTC was simply a routine custody transfer and reiterated that the company retains 43,000 BTC.
Metaplanet stock gained 0.9% on Thursday, closing at 223 yen ($1.40).
