CryptoSlate
Metaplanet plans to raise ¥52 billion ($329 million) through zero-coupon convertible bonds due in 2031, using part of the proceeds to refinance Bitcoin-backed loans and fund share repurchases. The company announced a ¥60 billion ($380 million) buyback authorization after its shares fell nearly 90% from their June 2025 peak.
Why it matters
As of Sept. 30, Metaplanet had about $649.5 million outstanding on an $800 million credit facility secured by Bitcoin. That debt equaled 17.7% of the net asset value of its Bitcoin reserves, above the company’s guideline of keeping the ratio below 10%. Metaplanet held 44,000 BTC at the end of September and said a further Bitcoin price decline could push the borrowing ratio higher.
The company plans to use about ¥23.6 billion ($149 million) of bond proceeds to repay loans in November, reducing facility borrowing to roughly $500.5 million. Based on September asset values, that would bring the ratio to about 13.6%, still above its preferred threshold. The refinancing would replace some interest-bearing, Bitcoin-collateralized debt without immediately reducing total liabilities. Investors can also demand repayment after three years, ahead of the bonds’ 2031 maturity.
Market impact
Metaplanet plans to put up to ¥28.3 billion ($179 million) toward repurchases. The new program permits purchases of up to 200 million shares, about 14.7% of outstanding stock, from Oct. 14, 2026, through Oct. 13, 2027. An initial off-auction transaction targets up to 96.9 million shares for about ¥25.3 billion ($160 million); if completed, it could cut the share count by about 7.1%.
The stock closed at ¥261 on Oct. 13, down about 36% this year and nearly 90% from its June 2025 peak of ¥1,930. The buyback could support Metaplanet’s per-share Bitcoin exposure, but convertible-bond hedging may add selling pressure: CEO Simon Gerovich agreed to lend up to 55 million shares for hedging, and bond conversion could dilute shareholders. Final conversion terms remain undetermined.
Frequently asked questions
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How much Bitcoin-backed debt does Metaplanet plan to repay?
Metaplanet plans to allocate about ¥23.6 billion ($149 million) of the bond proceeds to repay part of its outstanding loans in November.
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Would the planned repayment bring Metaplanet below its leverage guideline?
No. Based on September asset values, the repayment would lower the borrowing ratio from 17.7% to roughly 13.6%, above the company’s preferred limit of 10%.
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How large is Metaplanet’s new share-buyback authorization?
The ¥60 billion ($380 million) program allows repurchases of up to 200 million shares, about 14.7% of outstanding stock, between Oct. 14, 2026, and Oct. 13, 2027.
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How could convertible-bond hedging affect Metaplanet shares?
CEO Simon Gerovich agreed to lend up to 55 million personally held shares for hedging. Investors could borrow and potentially sell shares, adding pressure even as Metaplanet buys back stock.
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Could the new bonds dilute Metaplanet shareholders?
Yes. Investors may convert the bonds into equity, which could dilute existing shareholders. Metaplanet has not yet set the final conversion terms.
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