Star seeds (TSE Standard: 3083) said its consolidated subsidiary Star seeds Digital, which it calls SSD, will buy 32 data-center AI servers (GPU servers) and lease them to a Japanese company for 24 months. The board approved the deal on October 12, 2026, and the company announced it the next day.
The terms
The total transaction value is roughly $18.33mn (about ¥2.9bn), which Star seeds expects to equal 10% or more of consolidated sales in its previous fiscal year. Settlement is in cash by bank transfer. The company withheld the breakdown of the amount at its counterparty's request.
The contract is legally a lease, but ownership passes to the lessee at no charge once the 24-month term ends and the full amount is paid. The lease fee is received in full before the equipment is delivered, so SSD extends no credit to the lessee and, in the company's words, the deal carries no financing function. It is SSD's first lease transaction; until now the subsidiary has bought and sold server products.
To be booked as a sale
Star seeds says it will not account for the deal under lease accounting standards. It cites three facts: payment in full before delivery, the lessee's possession and use of the equipment, and SSD's inability to pledge or dispose of the machines at will. The company plans to treat it as a sale and record revenue when the equipment is accepted.
Counterparties and timing
The supplier is a Singapore-based designer and seller of computers, servers and motherboards. The lessee is a Tokyo-based provider of cloud, internet-connection and internet data-center services. The notice withholds both names at the counterparty's request. It lists no capital, personnel or business relationship between the lessee and Star seeds.
Revenue is expected in the fiscal year ending February 2027, and the company says the deal is already reflected in the guidance it raised on September 8, so the outlook is unchanged. If delivery and acceptance come later, revenue could instead fall in the year ending February 2028. The notice does not say whether delivery or payment has occurred.