I just looked through Metaplanet’s announcement on the Tokyo Stock Exchange today, and it gave me chills.
The “Japanese MSTR” announced a ¥52 billion (about $330 million) zero-coupon convertible bond due in 2031—and not a single yen of the proceeds will go toward buying crypto: ¥23.6 billion will repay $BTC in mortgage debt, and ¥28.3 billion will go toward buying back its own shares.
It holds 44,000 $BTC (about $3.6 billion, making it the world’s second-largest corporate Bitcoin holder), but its Bitcoin-backed leverage ratio had already hit 17.7% by the end of September, while the company’s red line is just 10%. Put simply: it doesn’t want to sell its coins at a loss at $83,000, so it’s using a different kind of borrowing to stay afloat.
The irony? Its share price still fell 1.5% on the day of the announcement, and it’s down 52% over the past 12 months.
Pick a side: Is the ultimate form of a Bitcoin-holding company simply “holding Bitcoin,” or is “Bitcoin just collateral, while the real game is leveraged financial engineering”?
$ETH $SOL #Metaplanet
The “Japanese MSTR” announced a ¥52 billion (about $330 million) zero-coupon convertible bond due in 2031—and not a single yen of the proceeds will go toward buying crypto: ¥23.6 billion will repay $BTC in mortgage debt, and ¥28.3 billion will go toward buying back its own shares.
It holds 44,000 $BTC (about $3.6 billion, making it the world’s second-largest corporate Bitcoin holder), but its Bitcoin-backed leverage ratio had already hit 17.7% by the end of September, while the company’s red line is just 10%. Put simply: it doesn’t want to sell its coins at a loss at $83,000, so it’s using a different kind of borrowing to stay afloat.
The irony? Its share price still fell 1.5% on the day of the announcement, and it’s down 52% over the past 12 months.
Pick a side: Is the ultimate form of a Bitcoin-holding company simply “holding Bitcoin,” or is “Bitcoin just collateral, while the real game is leveraged financial engineering”?
$ETH $SOL #Metaplanet