Metaplanet leaned on borrowing rather than its stock to fund the buying, tapping credit facilities and ordinary bonds alongside $10.95 million in revenue from a "Bitcoin Income Generation" program that sells options against its holdings. It issued new common shares only when its market value stayed above the value of its Bitcoin.
That distinction matters for treasury companies, whose model hinges on trading at a premium to their crypto, a gap known as mNAV, so they can sell stock and buy more Bitcoin without diluting shareholders. As that premium erodes across the sector, funding purchases with equity turns into a losing trade.
Treasury firms hit the brakesStrategy Could Sell Up to $1.25B of Bitcoin Under 'Digital Credit Capital Framework'
