Metaplanet plans to issue bitcoin-backed bonds with yields of up to 6%

Metaplanet plans to issue bitcoin-backed bonds with an annualized yield of approximately 4% to 6%

According to Benchmark analysis, Metaplanet plans to use its newly acquired Japanese brokerage company to develop bitcoin-backed bonds with an annualized yield of approximately 4% to 6%.

Highlights

Metaplanet plans to issue bitcoin-backed bonds with annualized yields between 4% and 6%. The company acquired Siiibo Securities for 2.1 billion yen, giving it a regulated Japanese securities platform. In the future, bitbonds may be linked to the chain, settled using stablecoins, and traded in the secondary market. Benchmark maintains its buy rating on Metaplanet shares and a price target of 405 yen.

Metaplanet Securities may become a bitbond platform

Benchmark analyst Mark Palmer believes investors have underestimated the importance of Metaplanet's 2.1 billion yen (US$13 million) acquisition of Siiibo Securities. Palmer wrote: "When Metaplanet completed its acquisition of Siiibo Securities, the market generally viewed it as a modest supplemental transaction. Our discussions with Dylan Leclerc last week showed that this interpretation seriously underestimated the company's plans for the acquisition." Metaplan used the acquired brokerage firm to form Metaplan Securities in early July. The subsidiary focuses on bitcoin-related digital asset investment banking. The transaction also enabled Metaplanet to obtain a Class 1 financial instruments business operator license regulated by the Financial Services Agency of Japan. The license allows the subsidiary to structure and distribute securities in Japan. According to Leclerc, director of bitcoin strategy at Metaplanet, it typically takes several quarters or more to obtain a similar license from scratch. As a result, the acquisition of Siiibo provides a ready-made regulatory foundation for the company's planned fixed-income business.

How the proposed bitcoin-backed bond works

Metaplanet reportedly plans to build its securities subsidiary into a platform that would allow companies that adopt a Bitcoin treasury strategy to issue bonds to raise funds for the purchase of Bitcoin. The proposed instruments, called "bitbonds", could initially provide annualized yields of about 4% to 6%. According to Benchmark's assessment, Metaplanet plans to link these bonds in the next few years, use stablecoins for settlement, and establish a secondary market. This model will allow Metaplanet to expand beyond just raising funds for its own Bitcoin purchases. Its brokerage firm can structure and distribute debt for other companies that want to put Bitcoin on their balance sheets. Metaplanet has not disclosed final offering terms, qualified investors, mortgage ratios or issue date. As a result, expected yields remain part of the company's long-term plans, rather than active bond issuance.

Project Nova: Beyond passive Bitcoin treasury strategies

The bitbond proposal is part of Metaplanet's "Project Nova" initiative, which aims to use its Bitcoin balance sheet to develop financial services and acquire businesses that generate cash flow. Days before Benchmark disclosed more details, Metaplanet launched a joint study with yen stablecoin issuer JPYC, tokenization platform Progmat and Metaplanet Securities. The team is studying whether Bitcoin can serve as collateral or credit-enhancing asset for digital corporate bonds and other credit products. Research covers product design, regulation, investor protection, distribution and stablecoin settlement. It will also evaluate security-based tokens, round-the-clock trading and daily interest-bearing. However, participants have not yet approved any products, release dates, yields or distribution structures. Metaplanet has previously said "nothing has been determined", distinguishing the study from any confirmed commercial releases.

Benchmark maintains a buy rating on Metaplanet shares

Palmer said that even though Metaplanet is preparing the infrastructure for a broader capital markets business, the market still sees it primarily as a listed alternative to Bitcoin. "Our conclusion is that while the company is preparing to execute a plan to launch the entire capital market, the market still views Metaplanet as a passive alternative to Bitcoin." Benchmark maintains its buy rating on Metaplanet shares and a price target of 405 yen. The report shows that the company holds 43,000 bitcoins worth nearly $2.8 billion, making it the third-largest publicly traded holder of corporate bitcoins. For U.S. investors, the proposal provides another comparison point with Bitcoin Treasury companies such as Strategy, which have used bonds, stocks and preferred stock to finance their purchases of Bitcoin. However, Metaplanet's Japanese license does not automatically authorize the sale of Bitbonds in the United States. Under the guidance of the U.S. Securities and Exchange Commission, any issuance in the United States requires SEC registration or exemptions under applicable federal securities laws. Metaplanet's next step will depend on product approvals, negotiations with Japanese regulators, and whether issuers show demand for bitcoin-backed corporate bonds.