Metaplanet revises capital allocation policy, plans to allocate up to 90% of assets to BTC

PANews reported on October 5 that, according to official sources, Japanese listed company Metaplanet announced a further revision of its capital allocation policy. Following the revision, Bitcoin will generally account for approximately 85% to 90% of total assets, with a newly added strategic investment allocation of approximately 10% to 15% of total assets, covering financial platform M&A, yield-generating assets, and investment capital for asset management businesses. This strategic investment allocation will in principle be funded through non-dilutive financing to common shareholders, such as BitBonds, borrowings, Bitcoin-collateralized credit financing, and perpetual preferred shares, managed separately under ALM and not subject to the guideline that Bitcoin-related borrowings remain below approximately 10% of BTC NAV. Credit financing borrowings used to acquire and hold Bitcoin will still be kept below approximately 10% of BTC NAV, with permanent equity capital remaining the primary source of acquisition funding. The company also launched a net interest income strategy, investing through the aforementioned financing into assets whose yields exceed the cost of capital to capture net interest margin income.

Previously, Metaplanet announced a net purchase of 1,000 BTC in the third quarter, bringing its total holdings to 44,000 BTC.