Japanese bitcoin treasury company Metaplanet (3350) has unveiled a continuous bond issuance program called 'BitBonds', completing its first sale with four privately placed series worth approximately 200 million yen ($1.3 million). According to reports from CoinDesk, the Tokyo-listed company announced the inaugural unsecured senior bonds that mature in roughly three years and carry annual interest rates of 4% to 4.3%. The solicitation process began in late July and has now closed, as disclosed on August 13. The bonds were distributed through wholly owned Metaplanet Securities to individuals and companies under Japan's small-number private placement rules, marking the firm's broader push into Japan's yen-denominated credit market.
As reported by CoinDesk, Metaplanet stated that BitBonds will sit alongside common stock, equity-linked securities and preferred shares as a core funding channel. Future issuance will depend on funding needs, market conditions and investor demand, with the company eventually considering registered public offerings. The program allows the company to issue senior debt as needed rather than depend on a single large bond transaction, with Metaplanet "intending" to prepare for public bond offerings if issuance expands, though no such offering has been approved. The launch follows Metaplanet's July acquisition of Siiibo Securities, which was renamed Metaplanet Securities, giving the company a regulated securities platform for bitcoin-related financial products that had supported more than 100 bond issuances by over 40 issuers before joining the group.
According to CoinDesk reports, unlike Metaplanet shares, which tend to reflect changes in the value of its bitcoin holdings, the bonds offer fixed interest and principal repayment based on the company's creditworthiness. However, they are unsecured, unrated and not principal-protected, while the issuer's financial position remains heavily exposed to bitcoin price swings. The inaugural securities differ from earlier descriptions of potential bitcoin-backed bonds, with Metaplanet's filing stating that no security interest has been granted over Bitcoin or other group assets, and principal is not protected. Bitcoin nevertheless remains relevant to credit risk because it is Metaplanet's principal asset, with the company warning that its financial condition and ability to meet principal and interest obligations could be affected by bitcoin price movements. The bonds also carry transfer restrictions, and liquidity before maturity is not guaranteed.
As reported by CoinDesk, Metaplanet's August 13 interim results put the credit exposure in context, with first-half net sales rising 133.7% year-over-year to 4.94 billion yen and operating profit increasing 136.3% to 3.33 billion yen. However, the company posted a 182.77 billion yen net loss, primarily due to a 184.30 billion yen noncash Bitcoin valuation loss. At June 30, Metaplanet held 43,000 BTC and reported total assets of 418.18 billion yen and net assets of 340.88 billion yen. The company had also drawn $414 million from a $500 million Bitcoin collateralized credit facility, with Bitcoin pledged under that facility giving the lender priority rights over the collateral. CEO Simon Gerovich separately confirmed Thursday that Metaplanet still owns 43,000 BTC after 5,014 BTC moved between company custodial addresses, with Gerovich confirming no Bitcoin was sold during the custody transfers.
