Metaplanet plans $380 million buyback after 90% slide

The Japanese Bitcoin treasury company announced on Oct. 13 that it would issue ¥52 billion ($329 million) in unsecured, zero-coupon Euro-yen convertible bonds due in 2031. The offering is expected to close on Oct. 29 and target investors mainly in Europe and Asia. The bonds are planned for listing on the Singapore Exchange.

Metaplanet plans to use about ¥23.6 billion ($149 million) of the proceeds in November to repay part of its Bitcoin-backed loans. The remaining ¥28.3 billion ($179 million) would fund share repurchases under a new ¥60 billion ($380 million) buyback program.

The new authorization allows the company to repurchase up to 200 million common shares, or about 14.7% of its outstanding stock, between Oct. 14, 2026, and Oct. 13, 2027. Metaplanet plans to begin repurchases on Oct. 14 through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading system.

The initial plan covers up to 96.9 million shares for about ¥25.3 billion ($160 million). If completed in full, the transaction could reduce the outstanding share count by about 7.1%. The final number will depend on how many shares investors offer.

Metaplanet terminated its previous ¥75 billion ($475 million) buyback authorization, established in October 2025, after making no purchases under it. The company’s capital allocation policy generally avoids common-share issuance when its market-to-net-asset-value ratio, or mNAV, is below 1. The ratio compares the company’s market value with the net asset value of its Bitcoin holdings.

Metaplanet had about $649.5 million outstanding under an $800 million credit facility secured by Bitcoin on Sept. 30. The debt represented 17.7% of the net asset value of its Bitcoin reserves, above the company’s preferred limit of 10%.

The planned repayment would reduce borrowings under the facility to about $500.5 million. Based on the reported September asset values, the debt would then equal about 13.6% of the reserves’ value if other conditions remained unchanged. Metaplanet held 44,000 Bitcoin at the end of September.

The company warned that a decline in Bitcoin’s price could increase its borrowing ratio by reducing the value of its collateral. The refinancing would reduce interest costs and release some pledged Bitcoin without requiring a sale, but it would not immediately reduce total liabilities. Bondholders can demand repayment after three years, despite the bonds’ 2031 maturity.

Metaplanet shares closed at ¥261 on Oct. 13, down about 36% since the start of 2026 and nearly 90% from their June 2025 peak of ¥1,930.

Chief Executive Simon Gerovich has agreed to lend up to 55 million personally held shares through Gerovich Family Holdings Limited to support hedging linked to the bonds. The lending fee is 0.75% a year. Investors could borrow and sell the shares while hedging their bond positions.

The bonds could dilute existing shareholders if investors convert them into equity. Metaplanet plans to set the conversion price above the share price corresponding to an mNAV of 1, but the final conversion terms have not been determined.