Bitcoin treasury company Metaplanet unveils BitBonds with $1.3 million private debt sale

Japanese bitcoin treasury company Metaplanet has introduced a new bond issuance program called "BitBonds," concluding its initial sale with four privately placed series valued at approximately 200 million yen ($1.3 million). As a Tokyo-listed company, Metaplanet stated that the unsecured senior bonds will have a maturity period of around three years and will carry interest rates ranging from 4% to 4.3% annually. The bond sale was launched in late July and has since come to an end, as disclosed on August 13.

Metaplanet aims to incorporate BitBonds alongside common stock, equity-linked securities, and preferred shares as a core funding channel. The future issuance of these bonds will be contingent on funding requirements, prevailing market conditions, and investor demand. Eventually, the company may consider registered public offerings.

Unlike Metaplanet shares, which are influenced by the value of its bitcoin holdings, the bonds provide a fixed interest rate and principal repayment based on the company's creditworthiness. However, these bonds are unsecured, unrated, and not principal-protected, and they are still subject to the company's exposure to fluctuations in the bitcoin market.

Additionally, the bonds come with transfer restrictions, and liquidity before maturity is not guaranteed.

The inaugural securities were issued through Metaplanet Securities, a wholly-owned subsidiary of the company, to individual and corporate investors under Japan's small-number private placement rules. This move signifies Metaplanet's expansion into Japan's yen-denominated credit market. The announcement comes as company CEO Simon Gerovich dismissed rumors that the firm had sold any of its 43,000 BTC bitcoin holdings, insisting that the 5,014 BTC movement was a routine custody transfer and that Metaplanet's holdings remain at 43,000 BTC. Metaplanet shares ended the trading day up 0.9%, closing at 223 yen ($1.40).