Today, Beijing time, Japanese-listed company Metaplanet announced that last quarter it first sold 10,000 $BTC for cash, then bought them back—and bought back more than it had sold.
Bitcoin was the first cryptocurrency. Its supply is capped, and many companies hold it on their books as a reserve asset.
The reason for selling and then buying back was stated plainly in the announcement: credit rating agencies look not only at whether Bitcoin can be sold, but whether a company is actually willing to sell it when needed to repay debt.
So the amount sold this time exceeded the principal of all the company’s bonds and borrowings, using a real transaction to demonstrate that its Bitcoin holdings could be converted into cash at any time.
The debt was not used for repayment and remains under its original terms. The company said this does not represent a change in its Bitcoin accumulation strategy. It plans to obtain credit ratings to make it easier to issue bonds and preferred shares, then continue adding to its Bitcoin holdings.
Bitcoin was the first cryptocurrency. Its supply is capped, and many companies hold it on their books as a reserve asset.
The reason for selling and then buying back was stated plainly in the announcement: credit rating agencies look not only at whether Bitcoin can be sold, but whether a company is actually willing to sell it when needed to repay debt.
So the amount sold this time exceeded the principal of all the company’s bonds and borrowings, using a real transaction to demonstrate that its Bitcoin holdings could be converted into cash at any time.
The debt was not used for repayment and remains under its original terms. The company said this does not represent a change in its Bitcoin accumulation strategy. It plans to obtain credit ratings to make it easier to issue bonds and preferred shares, then continue adding to its Bitcoin holdings.