Corporate Bitcoin Holders Face the Cash Reality of Debt Deadlines
Metaplanet sold Bitcoin to prove it could sell, then bought it back for more
Japanese treasury company Metaplanet sold 10,000 bitcoin on Oct. 5 and then bought back 11,000 at a higher average price, according to the company's disclosure. The round-trip trade cost roughly ¥11.57 billion on the coins it replaced, before transaction costs and taxes. The sale was not about generating cash to pay down debt. It was about convincing prospective creditors that the company could convert its holdings into payments when the time comes.
This episode highlights a tension that corporate Bitcoin holders are increasingly dealing with. Bitcoin does not expire or have a maturity date, but the debt contracts held by companies that own Bitcoin do. Shareholders may be willing to hold coins for years waiting for a higher price, while lenders have contracts that specify when they want their money back.
Key numbers
- Metaplanet received ¥124.7 billion from selling 10,000 BTC and spent ¥149.9 billion buying back 11,000 BTC, paying about 9.3% more per coin.
- Strategy reported approximately $5.71 billion in dollar cash as of Oct. 4: a $4.88 billion dedicated reserve plus $833.4 million in separate cash.
- Strategy faces potential note repurchase obligations totaling about $5.91 billion across 2027 and 2028.
- Metaplanet has an ¥8 billion zero-coupon bond with a redemption date of April 23, 2027.
The cost of proving liquidity
Metaplanet's disclosure explained that the sale was part of a credit rating effort. Prospective lenders wanted assurance that management could use the company's Bitcoin holdings to meet obligations, even though shareholders had invested because of those holdings.
The demonstration was expensive. The ¥149.9 billion purchase reflected an average price roughly 9.3% higher than what the company received from the original sale. Applied to the 10,000 coins replaced, that difference totals approximately ¥11.57 billion before costs and taxes.
Metaplanet did not use the sale proceeds to repay existing borrowings. It ended September with 44,000 BTC in total holdings.
Strategy's approach: build cash before you need it
Strategy took a different route by accumulating a substantial cash position. Its Oct. 5 SEC filing reported a $4.88 billion dedicated reserve, designated for preferred-stock dividends and debt interest payments, along with $833.4 million in separate dollar-denominated cash.
The dedicated reserve has restrictions: uses beyond dividends and interest require board approval. The separate cash balance is more flexible. Together, the roughly $5.71 billion gives management breathing room to cover payments without being forced to sell coins at an inconvenient market price.
Between Sept. 28 and Oct. 4, Strategy drew $142.5 million from its reserve for dividends and interest, spent $154.1 million repurchasing preferred shares, and bought $13 million in Bitcoin. It still held 848,000 BTC, originally purchased for about $63.97 billion.
The debt wall for corporate Bitcoin holders
Both companies face specific 2027 deadlines that bring the tension between holding Bitcoin and paying cash to a head.
Metaplanet's June financials showed ¥67.49 billion in short-term borrowings and ¥8 billion in bonds payable within a year, against only ¥1.09 billion in cash and deposits plus ¥250 million in USDC, a stablecoin pegged to the US dollar. Its zero-coupon bond carries an April 23, 2027 redemption date and an early-redemption right.
Strategy's notes technically mature in September 2028, but holders can request early repayment as of September 15, 2027. The $1.01 billion associated with that date, plus roughly $4.9 billion with similar rights in 2028, brings total exposure to about $5.91 billion.
Management can re-borrow, issue securities, or use existing cash to meet obligations, but each option has its own costs and may not be equally attractive in every market condition.
What remains uncertain
- The full ¥8 billion bond balance was reported in June. Whether that amount is still outstanding needs confirmation.
- Strategy's note payment obligations depend on whether holders actually exercise their repurchase rights. Conversions or repurchases before then could reduce the amounts owed.
- Cash figures for Metaplanet and Strategy come from different reporting periods and should not be treated as a direct comparison of current liquidity.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.