Here’s what happened with Metaplanet’s unusual BTC transaction in Q3.
One of the largest corporate holders of bitcoin sold 10,000 units during the third quarter of the year, according to the company’s most recent filing, only to buy more back.
This rather surprising move was designed to prove that its massive bitcoin treasury can be converted into cash when needed.
The filing reveals that the company sold 10,000 BTC for ¥124.7 billion (approximately $790 million) and held the proceeds temporarily in cash. Shortly after, it purchased 11,000 BTC for almost ¥150 billion and ultimately increased its holdings by an additional 1,000 units.
Consequently, its total stash grew to 44,000 BTC as of September 30. The purchase, the firm explained, was completed to demonstrate to credit-rating agencies and fixed-income investors that its bitcoin fortune is genuinely liquid.
The cash raised from the sale exceeded the company’s roughly ¥122.4 billion in net bonds, borrowings, and other relevant liabilities. It’s worth noting that those debts were not repaid. Instead, Metaplanet wanted to show that it could monetize enough BTC to cover its obligations if necessary.
The move was a part of a broader plan to obtain a credit rating and expand financing options through bonds and preferred stock.
On the downside, Metaplanet sold at slightly lower prices and had to repurchase its stash at higher levels. The stash also generated a US tax capital loss that could potentially create a deferred tax asset of approximately $97 million. Nevertheless, the firm stressed that this remains preliminary and unaudited.
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Aside from its accumulation, Metaplanet recently made another BTC move, investing 2,100 BTC and $2.5 million to transfer from Super League Enterprise into Superplanet, a US Bitcoin treasury platform.