Metaplanet Issues $329M in Convertible Bonds to Cut Bitcoin Loan Debt and Buy Back Shares

$329M bond issuance targets debt reduction and buybacks

Metaplanet, a Japanese investment and Bitcoin treasury company, announced on Tuesday that it will issue 52 billion yen ($329 million) in zero-coupon, euro-yen convertible bonds maturing in 2031. The bonds carry no interest payments, meaning holders receive no periodic payments but instead profit from any conversion into company stock later.

The company plans to use roughly 23.6 billion yen ($149 million) of the net proceeds to repay Bitcoin-collateralized loans, and about 28.3 billion yen ($179 million) for share buybacks.

What the buyback program covers

The buybacks are part of a newly announced share repurchasing program that targets up to 60 billion yen ($380 million) in total repurchases. Metaplanet said the bond proceeds aim to improve the company's debt structure by lowering its dependence on Bitcoin-collateralized loans without requiring it to sell any of its Bitcoin holdings.

• Metaplanet currently holds 44,000 BTC, valued at approximately $3.6 billion, making it the second-largest Bitcoin treasury firm as tracked by BitcoinTreasuries.
• Bitcoin-collateralized loans allow firms to borrow money using Bitcoin as security without selling the asset. Repaying these loans reduces the risk of losing Bitcoin if the collateral value drops.
• The share buyback program targets up to 60 billion yen ($380 million) in total.

What Metaplanet officially announced

According to the company's Tuesday announcement, the bond issuance is intended to streamline its debt structure. The company also outlined a revised capital allocation framework earlier that month, proposing to allocate up to 15% of total assets to strategic investments that would fund its Bitcoin accumulation and dividend payments.

Shareholder concerns from September

Metaplanet's share price closed 1.5% lower on Tuesday, extending a 12-month decline of 52.6% as reported by Yahoo Finance.

Separately, in September the company faced shareholder criticism for expanding its Series 10 executive stock option pool by nearly seven times. On September 11, Metaplanet said it would reduce the stock pool by 41%, cutting the number of potential shares underlying the options from 319.464 million to 188.19 million, returning to the level before its September 2025 international share offering.

Why the debt structure matters

By replacing Bitcoin-collateralized loans with convertible bond proceeds, Metaplanet reduces the risk that falling Bitcoin prices could trigger forced repayment or liquidation of its holdings. The company explicitly stated that no Bitcoin would be sold to service the debt.

• Cointelegraph: Metaplanet to issue $329M convertible bonds to pay debt, fund share buybacks
• Yahoo Finance (share price data)
• BitcoinTreasuries (holdings data)

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