Metaplanet’s debut BitBonds carry annual interest rates of up to 4.3%, but investors will still bear the company’s credit risk and exposure to bitcoin price fluctuations.

Japanese bitcoin treasury firm Metaplanet (3350) has launched a recurring bond program called “BitBonds,” with its first issuance consisting of four privately placed series totaling about 200 million yen ($1.3 million).

The Tokyo-listed company said the unsecured senior bonds mature in approximately three years and offer annual interest rates ranging from 4% to 4.3%. The offering process began in late July and concluded on Aug. 13, according to a company filing.

Metaplanet intends to make BitBonds a key financing option alongside common stock, equity-linked instruments and preferred shares. Future bond sales will be based on the company’s funding requirements, market conditions and investor demand. It also said it may eventually explore registered public bond offerings.

The bonds differ from Metaplanet’s shares, which are closely influenced by movements in the value of its bitcoin holdings. BitBonds provide fixed interest payments and principal repayment, provided the company remains capable of meeting its obligations. However, the securities are unsecured, unrated and lack principal protection, leaving investors exposed to Metaplanet’s financial condition and bitcoin-related volatility.

The bonds are also subject to transfer restrictions, meaning holders may face limited liquidity if they want to exit their positions before maturity.

The initial BitBonds were placed through Metaplanet Securities, the company’s wholly owned unit, with individual and corporate investors under Japan’s small-number private placement regulations. The issuance marks Metaplanet’s latest move to expand its access to Japan’s yen-denominated credit market.

The announcement came after CEO Simon Gerovich rejected claims that the company had sold bitcoin. He said the transfer of 5,014 BTC was a routine custody transaction and confirmed that Metaplanet continues to hold 43,000 BTC.

Metaplanet shares rose 0.9% on Thursday to close at 223 yen ($1.40).