Metaplanet Sold 10,000 Bitcoin and Bought Back 11,000 to Prove a Point

Metaplanet sold 10,000 BTC and bought back 11,000 during the third quarter, the Tokyo-listed treasury company disclosed, in a round trip staged to prove to credit rating agencies that it is both able and willing to turn its Bitcoin into cash.

The net effect was an increase of 1,000 BTC, taking the group's holdings to 44,000 BTC as of September 30, per BitcoinTresauries.

"Rating agencies and credit investors ask one question of a Bitcoin company: can that Bitcoin be turned into cash to meet obligations, and will it be?" chief executive Simon Gerovich tweeted. "We answered by doing it."

The reasoning in the filing is that while Bitcoin is liquid, what matters to rating agencies and bond investors is not only whether an asset can be sold but whether the issuer will actually sell it when obligations fall due. Rather than assert that, Metaplanet decided to demonstrate it with a real transaction.

So it sold an amount of Bitcoin exceeding the entire outstanding principal of its bonds, borrowings and other interest-bearing liabilities, and held the proceeds in cash. The debts were not repaid and remain outstanding on their original terms. Its liabilities, net of cash and dollar stablecoins, stood at ¥122.4 billion at quarter end, against sale proceeds of ¥124.7 billion.