Metaplanet Establishes 'BitBonds', Completes Initial Bond Issuance

Metaplanet announced on the 13th the establishment of a bond issuance program called "BitBonds" as a new fundraising framework. They have completed the solicitation for the issuance of unsecured ordinary bonds from the 21st to the 24th series through a private placement under the Financial Instruments and Exchange Act.

The initial issuance will begin solicitation in late July 2026, with a total of approximately 200 million yen in bonds issued in four series. The redemption period is about three years, with an interest rate ranging from 4.0% to 4.3% per annum.

Metaplanet positions BitBonds as a new fundraising method in addition to raising funds through common stocks, equity-related products, and preferred stocks. They aim to establish it as a medium- to long-term funding base in their capital structure through continuous issuance.

In this program, Metaplanet Securities, a wholly-owned subsidiary of Metaplanet and a Type I financial instruments business operator, will serve as the sales channel. This vertically integrated model, where Metaplanet composes financial products and Metaplanet Securities sells them directly to investors, is considered an advanced initiative in the Japanese market.

According to Metaplanet, Japan's transition to a sustainable positive interest rate environment marks a structural turning point in the yen-denominated bond market. With the government's promotion of the policy "from savings to investment," both individual and institutional investors are expanding their allocation of funds to domestic assets, leading to increased demand for yen-denominated yield products.

These bonds are unsecured and unguaranteed non-subordinated debts, and they have not been rated. Payments of principal and interest depend on Metaplanet's creditworthiness, and they note that the financial condition and operating results may be affected by fluctuations in the price of their main asset, Bitcoin (BTC).

Summary of Interim Financial Results

In addition to the establishment of this program, Metaplanet has also announced the contents of its interim financial results for the fiscal year ending December 2026. Sales increased by 133.7% year-on-year to 4.9 billion yen, and operating profit rose by 136.3% to 3.3 billion yen, resulting in significant revenue and profit growth.

On the other hand, due to the recognition of a Bitcoin valuation loss of 184.3 billion yen, the interim net loss amounted to 182.8 billion yen. The valuation loss is a non-cash item, and the amount of Bitcoin held has increased by 7,898 BTC during this period.

The full-year forecast estimates sales to increase by 79.7% to 16 billion yen and operating profit to rise by 81.3% to 11.4 billion yen compared to the previous period. However, in the second quarter, the mNAV, which indicates the ratio of market capitalization to net asset value, fell below 1.0, leading to no issuance of common stocks, and the increase in Bitcoin holdings also fell short of plans, resulting in progress on the full-year forecast being below initial plans.

Metaplanet plans to continue issuing bonds based on BitBonds while considering funding needs and market conditions.