Metaplanet unveils $380 million buyback after shares fall nearly 90% from peak

Metaplanet has authorized a ¥60 billion ($380 million) share buyback program after its stock lost nearly 90% of its value from its June 2025 peak of ¥1,930. Metaplanet shares have declined approximately 36% this year, closing at ¥261 on Oct. 13. The company plans to allocate up to ¥28.3 billion ($179 million) from a new bond offering to share repurchases. The new program allows Metaplanet to repurchase up to 200 million common shares, approximately 14.7% of outstanding stock, between Oct. 14, 2026, and Oct. 13, 2027. Metaplanet simultaneously terminated a ¥75 billion ($475 million) repurchase authorization established in October 2025, under which the company had acquired no shares.

Metaplanet plans to begin repurchases on Oct. 14 through the Tokyo Stock Exchange's ToSTNeT-3 off-auction trading system. The initial transaction targets up to 96.9 million shares for approximately ¥25.3 billion ($160 million). Full execution could reduce outstanding shares by about 7.1%, although the final volume will depend on the number of shares offered for sale.

Metaplanet announced plans on Oct. 13 to 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 will target investors primarily in Europe and Asia. The bonds are slated for listing on the Singapore Exchange. The financing would replace part of Metaplanet's interest-bearing, Bitcoin-collateralized debt with borrowing that requires no regular interest payments. Metaplanet expects the restructuring to free pledged Bitcoin, reduce financing costs and improve financial flexibility without selling cryptocurrency holdings.

Metaplanet's reliance on Bitcoin-backed borrowing has exceeded the company's internal risk limits. Metaplanet had approximately $649.5 million outstanding under an $800 million credit facility secured by Bitcoin holdings as of Sept. 30. The borrowing represented 17.7% of the net asset value of Metaplanet's Bitcoin reserves, above management's guideline to keep the ratio below 10%. Metaplanet held 44,000 BTC at the end of September. Metaplanet acknowledged that further Bitcoin price declines could increase the borrowing ratio by reducing the value of the company's cryptocurrency holdings. Metaplanet plans to allocate about ¥23.6 billion ($149 million) of bond proceeds to repay part of the outstanding loans in November. The repayment would reduce borrowing under the facility to approximately $500.5 million. The borrowing ratio would fall to roughly 13.6% based on September's reported asset values, assuming Bitcoin's value and other conditions remained unchanged. However, the ratio would remain above Metaplanet's preferred leverage threshold, leaving the company exposed to further Bitcoin price declines. Metaplanet acknowledged that replacing Bitcoin-backed loans with convertible bonds would not immediately reduce total liabilities, despite lowering interest expenses and reliance on pledged collateral. Investors can demand repayment after three years, potentially forcing Metaplanet to refinance before the bonds mature in 2031.

Bitcoin's struggles have weighed on investor sentiment toward cryptocurrency treasury companies during Metaplanet's prolonged stock decline. However, Strategy, the world's largest publicly traded corporate Bitcoin holder, has gained about 1% this year despite cryptocurrency market volatility. The contrasting performances highlight Metaplanet's challenges in maintaining investor demand while pursuing a Bitcoin accumulation strategy. Metaplanet's declining valuation has complicated the company's ability to raise common equity without diluting existing shareholders. Metaplanet generally avoids issuing common shares when its market-to-net-asset-value ratio, or mNAV, falls below 1 under its revised capital allocation policy. The ratio compares Metaplanet's enterprise value with the net asset value of the company's Bitcoin holdings. Issuing shares below that threshold could reduce existing shareholders' per-share exposure to Bitcoin. Repurchases could improve the metric by reducing outstanding shares, although benefits depend on execution prices and subsequent equity issuance.

Metaplanet CEO Simon Gerovich has agreed to lend up to 55 million personally held shares through Gerovich Family Holdings Limited, which Gerovich wholly owns. The arrangement supports hedging activities associated with the convertible bonds. The share-lending arrangement carries an annual fee of 0.75%. The arrangement would allow investors to borrow and potentially sell Metaplanet shares to hedge exposure to the bonds. Those transactions could create selling pressure even as Metaplanet repurchases shares, although the number of shares ultimately borrowed or sold remains uncertain. The bonds could also dilute existing shareholders if investors convert the bonds into equity. Metaplanet intends to set the conversion price above the share price corresponding to an mNAV of 1 at issuance. Metaplanet has not yet determined the final conversion terms.