Metaplanet Caps Bitcoin Borrowing Below 10 Percent of BTC NAV as Holdings Hit 44,000 BTC

Metaplanet has put a hard ceiling on how much it is willing to borrow against its Bitcoin, unveiling a revised capital allocation policy that keeps 85 to 90 percent of total assets in BTC and ties future purchases primarily to permanent equity instead of debt.

The move, disclosed in an Oct. 5 filing by the Tokyo-listed company, lands as Metaplanet’s holdings reached 44,000 BTC — a milestone that CEO Simon Gerovich says makes it the second largest listed Bitcoin treasury company in the world.

## What the new policy says

Under the revised framework, Bitcoin remains Metaplanet’s main treasury reserve asset, accounting for approximately 85 to 90 percent of total assets. The remaining 10 to 15 percent can be deployed across acquisitions supporting its Bitcoin financial platform, income-producing investments, and capital for its planned asset management business. Eligible investments can include overseas Bitcoin-related securities, such as preferred securities issued by other Bitcoin treasury companies.

The most consequential line for investors concerns leverage: Bitcoin-related borrowing through the company’s collateralized credit facility will generally be kept below roughly 10 percent of the net asset value of its BTC holdings. Most future Bitcoin purchases are expected to be funded with permanent equity capital.

Perpetual preferred stock will be a principal source of that permanent equity. Common stock can still be issued when Metaplanet’s mNAV — market value relative to net asset value — trades above 1.0x and management determines an issuance would improve value for existing shareholders.

## The third-quarter liquidity exercise

The policy update came with an unusual demonstration. Gerovich said on X that Metaplanet sold and repurchased Bitcoin during the third quarter as an exercise to prove the liquidity of its reserves. The company converted enough Bitcoin into cash to exceed the outstanding principal of its bonds, borrowings and other interest-bearing debt before rebuilding the position.

The exercise ultimately increased holdings by 1,000 BTC, leaving the company at 44,000 BTC as of Sept. 30 — up from 30,823 BTC when the original capital allocation policy was established in October 2025. The treasury has grown steadily through 2026, including a July purchase of 2,823 BTC that brought holdings to 43,000 BTC.

A new Net Interest Income Strategy will use financing from preferred stock, bonds and Bitcoin-backed credit facilities, aiming to turn the treasury itself into a source of recurring income.

## A governance reset that keeps giving context

The borrowing cap does not arrive in a vacuum. Metaplanet spent September managing a shareholder revolt over its executive stock compensation. Earlier in the month the company cut potential dilution tied to its Series 10 stock acquisition rights by 41.1 percent, reducing the potential share pool from 319.46 million shares to 188.19 million shares after investor concerns.

The revised allocation policy continues that theme of restraint: BTC Yield — the rate of growth in Bitcoin holdings per share — remains one of the company’s main performance indicators, and the explicit preference for permanent equity over debt signals a deliberate effort to decouple treasury growth from leverage risk.

## Why the 10 percent cap matters

For a company whose equity story is built on accumulating Bitcoin, capping Bitcoin-backed borrowing at roughly 10 percent of BTC NAV is a meaningful risk statement. Collateralized Bitcoin credit facilities expose borrowers to margin pressure during drawdowns — precisely the environment in which forced selling compounds losses.

By funding most purchases with permanent equity, Metaplanet removes the mechanical link between a Bitcoin price decline and forced Treasury liquidation. The third-quarter liquidity exercise, in which the company demonstrated it could cover its debt obligations from Bitcoin sales and then rebuild the position, appears designed to make the same point to creditors and shareholders alike.

With Bitcoin trading near 85,606 USD according to our price snapshot at the time of writing, Metaplanet’s 44,000 BTC position is worth roughly 3.77 billion USD — a treasury whose scale now sits behind only Strategy among listed Bitcoin holders, according to Gerovich’s claim, though readers should note such rankings shift as competitors continue buying.

## What to watch

The policy’s proof will come in its execution: whether preferred stock issuance funds Bitcoin purchases at scale, whether the Net Interest Income Strategy produces measurable recurring income, and whether the 10 percent borrowing ceiling holds through the next significant Bitcoin drawdown.

For everyday investors, the significance is straightforward. Metaplanet has moved from a pure accumulation story — borrow, buy, repeat — toward a structured balance-sheet approach with explicit leverage limits, income targets and dilution guardrails. Whether that discipline rewards shareholders depends on Bitcoin’s trajectory, but the framework itself marks one of the clearer attempts by a public company to institutionalize Bitcoin treasury management rather than simply lever it.

This article is for informational purposes only and does not constitute investment advice. Crypto markets are volatile, and readers should do their own research before making financial decisions.