Metaplanet to Issue $329M Convertible Bonds to Pay Debt and Fund Share Buybacks
Japanese investment and Bitcoin treasury firm Metaplanet announced plans to issue zero-coupon euro-yen convertible bonds totaling 52 billion yen ($329 million) due in 2031. The proceeds will be used to repay Bitcoin-backed loans and to fund share buybacks. This strategy aims to improve the company's debt structure without selling any of its substantial Bitcoin holdings.
Issuance Details and Use of Proceeds
Metaplanet plans to issue zero-coupon euro-yen convertible bonds amounting to 52 billion yen ($329 million) with maturity set for 2031. Approximately 23.6 billion yen ($149 million) of the net proceeds will be allocated to redeem Bitcoin-collateralized loans, while about 28.3 billion yen ($179 million) will be used for share repurchases.
The share buybacks form part of a new program targeting up to 60 billion yen ($380 million) in total repurchases. This move aims to enhance the company’s debt profile by reducing its reliance on Bitcoin-backed debt without liquidating any Bitcoin holdings.
Market Position and Stock Performance
Metaplanet ranks as the second-largest Bitcoin treasury firm, holding approximately 44,000 BTC with a valuation of $3.6 billion based on current market prices, according to BitcoinTreasuries data.
As per Yahoo Finance, Metaplanet's share price closed down 1.5% in Tokyo on Tuesday, extending a 52.6% decline over the past 12 months.
Prior Actions and Shareholder Response
Earlier this month, Metaplanet introduced a revised capital allocation framework proposing to allocate up to 15% of total assets for strategic investments aimed at Bitcoin accumulation and dividend payments.
In September, the management faced shareholder criticism after nearly a sevenfold expansion of its Series 10 executive stock option pool. Subsequently, on September 11, the company announced plans to reduce the stock pool by 41%, cutting potential shares underlying the rights from 319.464 million to 188.19 million — restoring it to pre-2025 international offering levels.
Why it matters
This news is significant as it highlights Metaplanet’s financial management strategy amid its substantial Bitcoin investments. Issuing convertible bonds to reduce Bitcoin-backed debt without selling BTC holdings mitigates financial risks and signals the company’s intent to maintain and grow its crypto treasury. The share buyback program reflects a move to enhance shareholder value and stock appeal. Meanwhile, the market’s reaction and shareholder criticism regarding executive stock options reveal ongoing internal challenges in balancing capital structure and investor relations.
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