Metaplanet has revised its capital allocation policy to keep 85% to 90% of its assets in Bitcoin while setting aside up to 15% for investments that can generate recurring income.
Summary
- Metaplanet plans to keep approximately 85% to 90% of its total assets in Bitcoin, while allocating the remaining 10% to 15% to acquisitions and income generating investments.
- Bitcoin related borrowing will generally remain below roughly 10% of BTC NAV, with permanent equity expected to fund most future Bitcoin purchases.
- Metaplanet held 44,000 BTC as of Sept. 30 after a third quarter sale and repurchase exercise ultimately increased its holdings by 1,000 BTC.
- A new Net Interest Income Strategy will use financing from preferred stock, bonds and Bitcoin backed credit facilities to invest in assets capable of generating recurring cash flow.
- Project Nova will build businesses around Metaplanet’s Bitcoin reserves through Metaplanet Securities and its proposed investment in U.S. based Super League Enterprise.
According to an Oct. 5 disclosure, the Tokyo listed company plans to fund most Bitcoin purchases with permanent equity capital, while Bitcoin related borrowing through its collateralized credit facility will generally be kept below roughly 10% of the net asset value of its BTC holdings.
Metaplanet held 44,000 BTC as of Sept. 30, compared with 30,823 BTC when it established its original capital allocation policy in October 2025.
CEO Simon Gerovich said on X that the company sold and repurchased Bitcoin during the third quarter as part of an exercise to demonstrate the liquidity of its reserves. Metaplanet converted enough Bitcoin into cash to exceed the outstanding principal of its bonds, borrowings and other interest bearing debt before rebuilding the position.
Gerovich said the company ultimately bought back more Bitcoin than it sold, leaving it with a net addition of 1,000 BTC.
Metaplanet keeps 85% to 90% of assets in Bitcoin
Bitcoin will remain Metaplanet’s main treasury reserve asset under the revised policy, accounting for approximately 85% to 90% of total assets.
BTC Yield, which measures the rate of growth in Bitcoin holdings per share, will remain one of the company’s main performance indicators.
The remaining 10% to 15% of assets can be deployed across acquisitions that support its Bitcoin financial platform, income producing investments and capital for its planned asset management business.
Eligible investments can include overseas Bitcoin related securities, such as preferred securities issued by other Bitcoin treasury companies.
Metaplanet’s treasury has continued to grow during 2026. As crypto.news previously reported, the company raised its holdings to 43,000 BTC in July after buying another 2,823 BTC.
Gerovich said the Sept. 30 balance of 44,000 BTC made Metaplanet the second largest listed Bitcoin treasury company in the world.
The company has made changes to its capital structure while accumulating Bitcoin. In September, Metaplanet cut potential dilution tied to its Series 10 stock acquisition rights by 41.1%, reducing the potential share pool from 319.46 million shares to 188.19 million.
Under the latest capital allocation policy, perpetual preferred stock will be a principal source of permanent equity for Bitcoin purchases. Common stock can still be issued when Metaplanet’s mNAV is above 1.0x and management determines the issuance would improve value for existing shareholders.
Metaplanet defines mNAV as enterprise value divided by the market value of its Bitcoin holdings.
When the ratio falls below 1.0x, management can use share buybacks to improve BTC Yield. Metaplanet considered that option in June when its mNAV dropped to 0.92x.
The revised policy gives management more flexibility because buybacks can be considered even above 1.0x when it believes the share price significantly undervalues the company’s intrinsic enterprise value. Funding can come from cash, preferred stock proceeds, credit facilities and income generated by its Bitcoin Income Generation business.
Net Interest Income Strategy targets recurring revenue
Metaplanet is pairing its revised asset allocation with a new Net Interest Income Strategy designed to generate recurring cash flow.
The company can raise capital through Bitcoin collateralized credit facilities, perpetual preferred stock and corporate bonds before investing the proceeds in income producing assets.
Metaplanet said it intends to make such investments only when the expected yield after credit risk exceeds its total cost of capital by an appropriate margin.
Net interest margin will serve as the main performance indicator for the strategy. Income can be used to cover preferred dividends and bond interest while providing more financing capacity for future Bitcoin purchases.
Gerovich said the strategy is intended to create recurring income streams and lower Metaplanet’s effective cost of capital. He said the company’s Bitcoin Income Generation business has now generated revenue for eight consecutive quarters.
The company has already been developing new financing channels around its Bitcoin treasury. Metaplanet launched its BitBonds program in August with four private bond placements totaling around 200 million yen.
The first unsecured senior bonds carry annual interest rates ranging from 4% to 4.3% and mature in roughly three years. Metaplanet Securities distributes the securities to eligible investors under Japan’s private placement framework.
Bitcoin collateralized credit facilities will remain available when equity financing becomes difficult because of market conditions or other factors. Metaplanet plans to treat such borrowing as temporary funding before progressively moving the financing into permanent capital.
Borrowing used specifically to acquire and hold Bitcoin will generally be kept below roughly 10% of BTC NAV.
Financing used for the 10% to 15% strategic investment allocation will be managed separately. Metaplanet plans to match debt and other funding against cash flows produced by the assets using an asset liability management framework.
Project Nova builds businesses around Metaplanet’s Bitcoin
Project Nova is the framework Metaplanet is using to build financial businesses around its Bitcoin treasury.
One part of the strategy is Metaplanet Securities, the regulated brokerage created after the company completed its acquisition of Siiibo Securities for 2.1 billion yen in July.
The securities business gives Metaplanet its own platform for issuing and distributing corporate bonds, preferred stock and other financial products.
Its plans extend into the U.S. market through a proposed investment in Nasdaq listed Super League Enterprise.
Metaplanet agreed in August to commit 2,100 BTC and $2.5 million in cash in exchange for common stock, Strategic Alliance Preferred Stock and other securities in Super League.
Once completed, Metaplanet would have the right to designate a majority of the company’s board. Super League is expected to become a consolidated subsidiary, change its name to Superplanet and develop a Bitcoin treasury business in the U.S.
The transaction remains subject to approval from Super League shareholders, required procedures with the U.S. Securities and Exchange Commission and Nasdaq, and other closing conditions. Metaplanet expects it to close during the fourth quarter of 2026.
Cash flow generated through these businesses is intended to support Metaplanet’s financing capacity and eventually provide capital for additional Bitcoin purchases.
Metaplanet demonstrates Bitcoin liquidity to creditors
Metaplanet’s third quarter Bitcoin transaction forms part of another part of the revised strategy: building its credit profile.
Gerovich said rating agencies and credit investors want to know whether a Bitcoin treasury company can convert its holdings into cash to meet its obligations.
Metaplanet said it sold enough Bitcoin to generate cash exceeding the total outstanding principal of its corporate bonds, borrowings and other interest bearing debt.
The company held the cash before repurchasing Bitcoin. According to Gerovich, the full sale and repurchase exercise left Metaplanet with 1,000 more BTC than it held before the transactions.
Generating recurring income outside Bitcoin forms another part of the credit strategy. Metaplanet plans to use cash flow from its strategic investments to demonstrate its ability to generate income from assets beyond its core BTC reserves.
The company intends to seek a credit rating and use its balance sheet strategy to expand access to financing through corporate bonds and preferred stock.
Metaplanet has already started prior consultations with the Tokyo Stock Exchange over the proposed listing of its preferred stock. The company said the listing remains subject to the exchange’s examination process and may not ultimately receive approval.
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