Metaplanet Announces $380 Million Share Buyback as Stock Falls 90% From Peak

Metaplanet's $380 million buyback comes after devastating stock decline

Metaplanet, a Japanese company that holds Bitcoin on its balance sheet, announced a $380 million share buyback program on Oct. 13. The move follows a sharp drop in its stock price, which has fallen nearly 90% from its June 2025 peak of ¥1,930. The stock closed at ¥261 on Oct. 13.

The company is raising $329 million by selling convertible bonds and plans to use part of that money to buy back its own shares. It also needs to restructure its debt, which has grown beyond its internal risk limits.

Key numbers at a glance

• $380 million share buyback program authorized
• $329 million in convertible bonds being issued
• Stock down nearly 90% from June 2025 peak
• Approximately $649.5 million in outstanding Bitcoin-backed loans
• Holding of 44,000 BTC as of Sept. 30

What the bond offering means

Metaplanet will issue ¥52 billion ($329 million) in unsecured, zero-coupon Euro-yen convertible bonds due in 2031. The bonds have no regular interest payments. Investors will be primarily in Europe and Asia. The listing is expected on the Singapore Exchange, with the offering targeting a close on Oct. 29.

The company says the new bonds will let it replace some of its existing interest-bearing loans that are backed by Bitcoin collateral. This should reduce financing costs and free up pledged Bitcoin without requiring the company to sell any of its cryptocurrency holdings.

About ¥23.6 billion ($149 million) of the proceeds will go toward repaying part of its outstanding loans in November. The company expects that to reduce borrowing under its credit facility to roughly $500.5 million, lowering its borrowing ratio to about 13.6% based on September asset values.

Bitcoin-backed debt exceeds internal limits

Metaplanet's reliance on Bitcoin-backed borrowing has gone above the company's own internal guideline of keeping the borrowing ratio below 10%. As of Sept. 30, the company had about $649.5 million outstanding against an $800 million credit facility secured by its Bitcoin holdings.

That represented 17.7% of the net asset value of its Bitcoin reserves, well above the 10% threshold management set for itself. The company acknowledged that further declines in Bitcoin prices could make the situation worse by reducing the value of its cryptocurrency collateral.

Even after the planned repayment, the borrowing ratio would remain above Metaplanet's preferred leverage threshold, meaning the company is still exposed to drops in Bitcoin prices.

Share buyback details

The company is replacing an older ¥75 billion ($475 million) repurchase authorization from October 2025, under which it had not bought back any shares. The new program allows Metaplanet to repurchase up to 200 million common shares, about 14.7% of its outstanding stock, over the next year from Oct. 14, 2026, to Oct. 13, 2027.

The company plans to begin buybacks immediately on Oct. 14 through a Tokyo Stock Exchange trading system. It is targeting up to 96.9 million shares for approximately ¥25.3 billion ($160 million). If fully executed, the buyback could reduce the outstanding share count by about 7.1%.

The share repurchases come as Metaplanet's stock has struggled. Shares are down about 36% this year. By comparison, Strategy (formerly MicroStrategy), the world's largest publicly traded corporate Bitcoin holder, has gained about 1% this year despite similar market conditions.

What investors should watch

Analysts note that CEO Simon Gerovich has a 55 million-share lending arrangement that could create selling pressure on the market, potentially offsetting demand from the buyback program.

Metaplanet also acknowledged that replacing Bitcoin-backed loans with convertible bonds will not immediately reduce its total liabilities. The bonds mature in 2031, but investors can demand repayment after three years, which could force the company to refinance earlier than planned.

The buyback effort highlights the challenge Metaplanet faces in maintaining investor demand for its shares while pursuing a strategy of accumulating Bitcoin. Its declining valuation has made it harder to raise capital through equity sales without diluting existing shareholders.

What is confirmed

• Metaplanet announced the buyback program and bond offering on Oct. 13
• The company holds 44,000 BTC as of Sept. 30
• The borrowing ratio stood at 17.7% of net asset value, above the 10% internal limit
• The bond offering targets a close on Oct. 29 and listing on the Singapore Exchange

What is still unclear

• Whether the buyback will succeed in boosting the stock price given ongoing market pressures
• Whether convertible bond holders will demand early repayment after three years
• How CEO Gerovich's share lending arrangement will interact with the buyback

Why this matters for Bitcoin treasury companies

Metaplanet's situation illustrates the risks faced by companies that borrow against their Bitcoin holdings. When Bitcoin prices fall, the value of collateral drops, pushing borrowing ratios higher and potentially forcing companies to sell Bitcoin or find other financing. Metaplanet is trying to avoid selling its Bitcoin by refinancing with bonds that require no regular interest payments, but the strategy leaves it exposed to future price moves.

Sources

• CryptoSlate