I did a bit of a deeper dive on
@Metaplanet acquiring Siibo and rolling out Metaplanet securities. Siibo has an online retail base and has typically sold bonds with a 1-3 year duration at a 2-8% coupon. The coupon is paid annually or semiannually, and the bond is paid back at maturity. The payment of the coupon and the repayment of the bonds at maturity will be covered by the income generation business and will scale as the
$BTC treasury grows.
Because metaplanet has the highest level licensing to issue bonds, they have a very exclusive engine and can use the revenue to purchase more bitcoin for the treasury with zero common equity dilution.
They will also be able to issue bonds for corporations and even sovereigns that are looking to build their own bitcoin treasuries. This will also generate income from the fees for issuing those bonds and will serve as additional income for buying BTC. Again, all of this with zero common equity dilution.
There is no amplification with bonds, like with Preferred’s, or the need to sell the common equity to pay dividends. I’m certain they will be adding Preferred’s as well, but Metaplanet securities is going to be highly accretive to the common stock and
$MPJPY.
These will be the first Bitbonds ever issued. A brilliant move by management to capture the idle cash sitting in near zero yield accounts in Japan, while highly accretive to the shareholders. 👏🫡