Metaplanet Launches BitBonds With $1.3M Private Debt Offering

The first batch of unsecured BitBonds offers annual returns of as much as 4.3%, while investors remain exposed to Metaplanet’s credit quality and bitcoin-related balance-sheet volatility.

Japanese bitcoin treasury firm Metaplanet (3350) has launched an ongoing bond issuance program called “BitBonds,” completing its debut offering through four privately placed series totaling roughly 200 million yen ($1.3 million).

According to an Aug. 13 filing, the Tokyo-listed company’s unsecured senior bonds have maturities of about three years and pay annual interest ranging from 4% to 4.3%. The solicitation process started in late July and has since concluded.

Metaplanet said BitBonds will become one of its main financing tools alongside common shares, equity-linked instruments and preferred stock. Future bond sales will be guided by the company’s capital requirements, market conditions and investor appetite, with public registered offerings potentially considered later.

While Metaplanet’s shares are generally influenced by fluctuations in the value of its bitcoin holdings, the bonds provide fixed interest payments and principal repayment tied to the company’s ability to meet its obligations. Still, the securities are unsecured, unrated and do not guarantee repayment of principal, leaving investors exposed to Metaplanet’s financial health and its significant sensitivity to bitcoin price movements.

The bonds are also subject to transfer restrictions, meaning investors may not be able to easily sell them before maturity.

The initial BitBonds were offered through Metaplanet Securities, a wholly owned subsidiary, to individuals and corporations under Japan’s small-lot private placement framework. The move represents another step in Metaplanet’s expansion into Japan’s yen-denominated debt market.

The announcement followed CEO Simon Gerovich’s rejection of speculation that the company had sold bitcoin. He said the transfer of 5,014 BTC was a routine custody movement and confirmed that Metaplanet still holds 43,000 BTC.

Metaplanet shares ended Thursday’s session 0.9% higher at 223 yen ($1.40).