The debut unsecured BitBonds carry annual interest rates of up to 4.3%, although investors take on risks tied to Metaplanet’s credit profile and its bitcoin-heavy balance sheet.
Japanese bitcoin treasury firm Metaplanet (3350) has introduced an ongoing debt issuance program called “BitBonds,” completing its first offering through four privately placed bond series totaling around 200 million yen ($1.3 million).
The Tokyo-listed company said the unsecured senior notes have maturities of approximately three years and pay annual coupons between 4% and 4.3%. The bond solicitation opened in late July and was completed by Aug. 13, according to a company disclosure.
BitBonds will join common shares, equity-linked securities and preferred stock as one of Metaplanet’s primary sources of capital. The company said future bond issuance will be determined by its financing requirements, market conditions and investor interest, while registered public offerings could be explored in the future.
Unlike Metaplanet’s stock, which is closely tied to movements in the value of its bitcoin portfolio, the bonds provide predetermined interest payments and principal repayment subject to the company’s ability to repay its debt. However, the securities are unsecured and unrated, with no guarantee that investors will recover their principal. Metaplanet’s financial position also remains highly sensitive to fluctuations in bitcoin prices.
Investors should also note that the bonds come with restrictions on transfers, and there is no assurance of an active secondary market before maturity.
Metaplanet Securities, the company’s wholly owned brokerage unit, distributed the initial bonds to individuals and corporations through Japan’s small-number private placement framework. The offering highlights Metaplanet’s growing focus on raising yen-denominated debt in Japan.
The bond launch came shortly after CEO Simon Gerovich dismissed reports that the company had liquidated bitcoin. Gerovich said a transfer involving 5,014 BTC was part of a routine custody operation and confirmed that Metaplanet continues to hold 43,000 BTC.
Metaplanet’s shares finished Thursday up 0.9% at 223 yen ($1.40).
