Metaplanet to buy Siiibo for ¥2.1bn to sell BTC products

Metaplanet will buy Siiibo Securities for ¥2.1 billion (about $13 million), rename it Metaplanet Securities and use Siiibo’s Type I Financial Instruments Business registration to distribute Bitcoin-linked yield products under Project Nova. The acquisition is expected to close on July 13 and the corporate conversion is slated for late August.

Metaplanet wrote in its filing that the purchase provides a ready license and an online securities platform to structure and sell BTC-linked bonds, treasury-backed preferred shares and security tokens to Japanese investors, subject to regulatory approval. CEO Simon Gerovich, who led the company’s shift from a budget hotel operator to a bitcoin-focused firm, described the transaction as a distribution strategy, writing that adding Siiibo’s registration and platform will allow the group to “develop and distribute Bitcoin-related yield products directly to Japanese investors.”

Siiibo, founded in 2019, has handled more than 100 private bond issues for over 40 companies. The brokerage has not posted a profit and recorded losses between ¥159 million and ¥175 million in each of its last three fiscal years. Metaplanet’s filing noted the ¥2.1 billion price largely reflects the time, capital and compliance staffing a fresh Type I registration would require.

Metaplanet will fund the purchase with cash and borrowings and can draw on Bitcoin-backed credit lines of up to $500 million using its BTC treasury as collateral. The company held about 40,177 BTC, roughly $2.6 billion at current prices, making the acquisition about 0.5% of its bitcoin position. Metaplanet has a stated target to accumulate 210,000 BTC and expects recurring fee income from securities distribution to help support that effort.

Planned products include BTC-linked bonds, treasury-backed preferred shares and security tokens. Distribution will begin with the company’s register of roughly 250,000 shareholders. All planned offerings must clear Japan’s financial rules for securities distribution before they go to market.

Market conditions present timing challenges. Bitcoin recently traded near $63,476, down about 21% over the past month and about 41% over the past year. Metaplanet reported a steep quarterly loss from markdowns on its bitcoin holdings while recording record income from bitcoin options in the same period, according to its filings.

Michael Saylor reposted Gerovich’s announcement and commented that reposts do not necessarily indicate endorsement, writing: “Retweets are notifications, not endorsements. Constructive dialogue leads to better outcomes. Bitcoin is hope and economic empowerment for everyone.”