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Metaplanet hands its bitcoin buying to preferred stock under a 10% borrowing cap

Metaplanet will fund most bitcoin buying with equity, chiefly perpetual preferred, and hold credit-line borrowing under about 10% of its BTC value. Its new room for income businesses also means the 1.0x mNAV test it applies before selling common shares no longer isolates a premium on the coins.

The Investor · Invest desk

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Illustration accompanying Metaplanet hands its bitcoin buying to preferred stock under a 10% borrowing cap
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What happened

  • Metaplanet held 44,000 BTC on Sept. 30, against 30,823 when it adopted its first capital allocation policy in October 2025.
  • About 85% to 90% of total assets will stay in bitcoin, and the remaining 10% to 15% can go to acquisitions, income-producing investments and a planned asset management business.
  • A new Net Interest Income Strategy will raise money through bitcoin-backed credit lines, perpetual preferred stock and corporate bonds and put it into assets that pay recurring cash.
  • Buybacks can now be considered with mNAV above 1.0x if management judges the shares significantly undervalued, funded from cash, credit lines, preferred proceeds or business income.
  • In September the company cut the shares its Series 10 stock acquisition rights could create by 41.1%, to 188.19 million from 319.46 million.

Why it matters

  • Who's exposed exposure Common shareholders can face a growing stack of preferred and bond claims from the income strategy while the credit-facility ratio, the only figure the 10% ceiling is reported to govern, holds still.
  • Who has to decide decision Anyone reading Metaplanet's mNAV now has to value the non-bitcoin sleeve first, since at book value that sleeve alone can put the ratio near 1.11x to 1.18x and clear the 1.0x gate for selling common stock.
  • What it limits constraint The diversification the 10% to 15% sleeve offers is limited when its eligible holdings include preferred paper from other bitcoin treasury companies, whose ability to pay tracks the same coin.

The 10% ceiling, as crypto.news reports the Oct. 5 disclosure, applies to bitcoin-related borrowing through Metaplanet's collateralized credit facility [10]. Against a balance sheet that is 85% to 90% bitcoin [1], borrowing under 10% of the coins comes to under roughly 8.5% to 9% of total assets [16]. As a limit on a credit line, that is modest. Perpetual preferred is named as a principal source of the permanent equity that will buy bitcoin [3]. It counts as equity on the policy's own terms, and I would still add it to the bonds when sizing the claims paid before the common shareholder. The report does not say whether the bonds and preferred raised for the income strategy [7] count toward the 10% limit, or how much of either is outstanding.

Gerovich said the third-quarter exercise converted enough bitcoin into cash to exceed the outstanding principal of the company's bonds, borrowings and other interest-bearing debt [12]. The company then bought back more than it sold, he said, for a net 1,000 BTC [13]. Holdings stood at 43,000 in July after a 2,823-coin purchase [14], so the net change to Sept. 30 equals the coins the round trip added [17].

The 13,177 coins added since the first policy are a rise of about 43% [18]. Management still asks to be judged per share: BTC Yield, the growth in bitcoin holdings per share, stays one of its main performance measures [9]. Gerovich said the Sept. 30 balance makes Metaplanet the second-largest listed bitcoin treasury company [20].

The valuation question sits in the mNAV denominator. Metaplanet defines mNAV as enterprise value divided by the market value of its bitcoin [4], and it may sell common stock when the ratio is above 1.0x and management judges the sale good for existing holders [3]. Suppose the 10% to 15% sleeve fills with businesses and securities, not cash, and the market pays book value for them plus spot for the coins. mNAV then reads about 1.11x to 1.18x [19] with no premium on the bitcoin. Buybacks were previously framed around readings below 1.0x, such as June's 0.92x [5]. With the new above-1.0x allowance [6], management can now argue for issuing and for buying back inside the same band.

In the best case the sleeve stays small and earns more than its funding costs. Metaplanet then trades as bitcoin plus a modest operating business, built through Metaplanet Securities and a proposed investment in U.S.-based Super League Enterprise under Project Nova [15]. The worse case for common holders is that preferred and bond issuance outruns the credit line, so senior claims grow while the 10% ratio holds still. A third path runs through the eligible list: it includes preferred securities issued by other bitcoin treasury companies [8], and income from those depends on the same coin price as the reserve.

I think the capped-leverage description fits the credit facility and has not yet been shown for the balance sheet as a whole. A disclosure putting preferred stock and bonds together in single digits as a share of BTC NAV would prove that view too cautious.

What to watch

  • Whether Metaplanet sells common stock while mNAV sits between 1.0x and about 1.18x, the band the non-bitcoin sleeve can account for on its own.
  • The yield and funding cost of the first investment made under the Net Interest Income Strategy.
  • Terms of the proposed investment in Super League Enterprise, the first sizeable use of the non-bitcoin allocation.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

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What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence62
Adoption30
Hype gap+20
Incentives68
Confidence60
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Ranked by verification strength, evidence, and original report placement.

  1. [1]

    Metaplanet plans to keep approximately 85% to 90% of its total assets in bitcoin, with the remaining 10% to 15% available for acquisitions supporting its bitcoin financial platform, income-producing investments and capital for a planned asset management business.

    Reported SupportedView cited source
  2. [2]

    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.

    Reported SupportedView cited source
  3. [3]

    Under the policy, perpetual preferred stock will be a principal source of permanent equity for bitcoin purchases; common stock can still be issued when mNAV is above 1.0x and management determines the issuance would improve value for existing shareholders.

    Reported SupportedView cited source
  4. [4]

    Metaplanet defines mNAV as enterprise value divided by the market value of its bitcoin holdings.

    Reported SupportedView cited source
  5. [5]

    When mNAV 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.

    Reported SupportedView cited source
  6. [6]

    The revised policy allows buybacks to be considered even above 1.0x mNAV when management believes the share price significantly undervalues intrinsic enterprise value, funded from cash, preferred stock proceeds, credit facilities and income from its Bitcoin Income Generation business.

    Reported SupportedView cited source
  7. [7]

    A new Net Interest Income Strategy will raise capital through bitcoin-collateralized credit facilities, perpetual preferred stock and corporate bonds and invest the proceeds in income-producing assets to generate recurring cash flow.

    Reported SupportedView cited source
  8. [8]

    Eligible investments can include overseas bitcoin-related securities, such as preferred securities issued by other bitcoin treasury companies.

    Reported SupportedView cited source
  9. [9]

    BTC Yield, which measures the rate of growth in bitcoin holdings per share, will remain one of the company's main performance indicators.

    Reported SupportedView cited source
  10. [10]

    According to an Oct. 5 disclosure, Metaplanet 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.

    Reported Supported Source: Metaplanet Oct. 5 disclosure, as reported by crypto.newsView cited source
  11. [11]

    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.

    Reported SupportedView cited source
  12. [12]

    CEO Simon Gerovich said the company sold and repurchased bitcoin in the third quarter to demonstrate the liquidity of its reserves, converting enough bitcoin into cash to exceed the outstanding principal of its bonds, borrowings and other interest-bearing debt before rebuilding the position.

    Reported Supported Source: Simon Gerovich, on X, as reported by crypto.newsView cited source
  13. [13]

    Gerovich said the company bought back more bitcoin than it sold, leaving a net addition of 1,000 BTC.

    Reported Supported Source: Simon Gerovich, as reported by crypto.newsView cited source
  14. [14]

    Metaplanet raised its holdings to 43,000 BTC in July after buying another 2,823 BTC.

    Reported SupportedView cited source
  15. [15]

    Project Nova will build businesses around Metaplanet's bitcoin reserves through Metaplanet Securities and its proposed investment in U.S.-based Super League Enterprise.

    Reported SupportedView cited source
  16. [16]

    Borrowing below 10% of BTC NAV, with bitcoin at 85% to 90% of total assets, equals borrowing below roughly 8.5% to 9% of total assets.

    Derived Supported
  17. [17]

    Holdings rose by 1,000 BTC between July and Sept. 30, equal to the net addition Gerovich attributed to the sale-and-repurchase exercise.

    Derived Supported
  18. [18]

    Metaplanet added 13,177 BTC since its October 2025 policy, a rise of about 43%.

    Derived Supported
  19. [19]

    If 10% to 15% of assets are non-cash businesses and securities valued at book, and enterprise value equals total assets with bitcoin at spot, mNAV would be about 1.11x to 1.18x with no premium on the bitcoin.

    Derived Supported
  20. [20]

    Gerovich said the Sept. 30 balance of 44,000 BTC made Metaplanet the second-largest listed bitcoin treasury company in the world.

    Reported Insufficient Source: Simon Gerovich, as reported by crypto.newsView cited source

Sources

2 independent publishers whose own reporting we read for this story.

  1. cointelegraph.com

    1 article · October 5, 2026

    Metaplanet reveals net income strategy to fuel Bitcoin accumulation
  2. crypto.news

    1 article · October 5, 2026

    Metaplanet caps Bitcoin borrowing as BTC holdings reach 44,000

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