Metaplanet Issues Zero-Coupon Convertible Bonds as It Refinances Bitcoin-Backed Debt

Metaplanet’s ¥52 billion convertible-bond issue is framed by a number that sits awkwardly with its Bitcoin accumulation narrative: approximately US$649.5 million was outstanding under its Bitcoin-collateralized credit facility at September 30, equal to about 17.7% of Bitcoin net asset value. That was above the company’s stated guideline of keeping borrowings under the facility below 10% of BTC NAV. The company now plans to use roughly ¥23.6 billion of the bond proceeds to repay that facility. That makes the transaction principally a balance-sheet adjustment, not a new round of Bitcoin buying.