Key facts
- Metaplanet will issue 52 billion yen ($329 million) in zero-coupon convertible bonds maturing in 2031.
- Proceeds will be used to repay $149 million in Bitcoin-collateralized loans.
- Approximately $179 million will fund share buybacks as part of a larger $380 million program.
- The company aims to reduce reliance on Bitcoin-collateralized debt without selling its Bitcoin holdings.
- Metaplanet holds 44,000 BTC, valued at $3.6 billion.
- Metaplanet's share price closed 1.5% lower on Tuesday.
Metaplanet, a Japanese investment and Bitcoin treasury company, announced plans to issue 52 billion yen ($329 million) in zero-coupon, euro-yen convertible bonds maturing in 2031. The company intends to use approximately 23.6 billion yen ($149 million) of the net proceeds to repay existing Bitcoin-collateralized loans. An additional 28.3 billion yen ($179 million) is earmarked for share buybacks, which are part of a broader program targeting up to 60 billion yen ($380 million) in total repurchases.
The issuance aims to improve Metaplanet's debt structure by reducing its reliance on Bitcoin-backed loans, allowing it to avoid selling its Bitcoin holdings. The company currently holds 44,000 BTC, valued at approximately $3.6 billion, making it the second-largest Bitcoin treasury firm. Metaplanet's share price closed 1.5% lower in Tokyo on Tuesday, contributing to a 52.6% decline over the past 12 months.
Earlier this month, Metaplanet revised its capital allocation framework to dedicate up to 15% of total assets to strategic investments, including Bitcoin accumulation and dividend payments. In September, the company faced shareholder criticism for expanding its executive stock option pool but later announced plans to reduce it by 41% by cutting the number of potential underlying shares.