Metaplanet repurchases 96.45 million shares for ¥25.27 billion

What happened

Metaplanet repurchased 96,447,400 common shares for ¥25.27 billion, or about $160 million, between Oct. 14 and Oct. 31, according to the company's Nov. 2 filing. The purchases represented roughly 7.1% of its previously outstanding shares and were made through Tokyo Stock Exchange transactions, including ordinary market purchases and off-auction repurchases through the exchange's ToSTNeT-3 system.

The buyback follows an Oct. 13 board resolution authorizing the company to repurchase up to 200 million shares for a maximum of ¥60 billion. Metaplanet has used approximately 42.1% of that spending limit, leaving about ¥34.73 billion available under the program, which runs through Oct. 13, 2027. Based on the reported transaction value, the average price paid was approximately ¥262 per share.

Metaplanet's stock closed at ¥250 on Nov. 2, gaining 2.46%, or ¥6, from its previous close of ¥244, according to Google Finance. The shares traded between ¥238 and ¥255 during the session, with about 16.53 million shares changing hands. The closing price remained below the ¥261 level used in the company's large off-auction repurchase on Oct. 14.

CEO Simon Gerovich confirmed the purchases and said management would keep prioritizing Bitcoin holdings per share when allocating capital. He identified the company's share price, market net asset value ratio and prevailing market conditions as factors guiding future decisions. Metaplanet held 44,000 BTC as of Sept. 30. The Nov. 2 filing did not announce an additional Bitcoin acquisition.

Why it matters

For a Bitcoin treasury company, repurchasing shares can increase the amount of Bitcoin attributable to each remaining share without requiring another Bitcoin purchase. That can matter when the stock trades below what management considers an attractive valuation relative to the net value of its Bitcoin holdings. Metaplanet has repeatedly cited mNAV, a metric comparing its valuation with the net value of its Bitcoin holdings while accounting for its financial structure, when explaining buyback policy. The company previously considered repurchasing common shares when its mNAV fell to 0.92 in June. The Nov. 2 filing does not establish a precise mNAV ratio for the latest repurchase period.

The buyback also shows a more flexible approach to capital allocation. Metaplanet can choose between accumulating more Bitcoin and reducing its share count, depending on which offers the better opportunity. Bitcoin.com News reported that the company separately redeemed $50.7 million, or ¥8 billion, of bonds ahead of schedule using cash, and that about $211.7 million, or ¥33.422 billion, is now available for Bitcoin purchases after changes to its funding allocation.

What the data shows

Metaplanet's Nov. 2 filing reported 96,447,400 shares repurchased for ¥25.27 billion between Oct. 14 and Oct. 31. The purchases represented about 7.1% of previously outstanding shares and about 48% of the 200 million shares authorized under the program, according to Bitcoin.com News. The company used approximately 42.1% of the ¥60 billion spending limit, leaving roughly ¥34.73 billion. The implied average purchase price was about ¥262 per share.

Metaplanet's stock closed at ¥250 on Nov. 2, up 2.46% from ¥244. The intraday range was ¥238 to ¥255, with about 16.53 million shares traded. As of Oct. 31, the company had 1,267,808,197 outstanding common shares excluding treasury stock and 96,474,427 treasury shares. It held 44,000 BTC as of Sept. 30.

Background

Metaplanet began the latest buyback with a large off-auction purchase. Crypto.news previously reported that the company acquired 73,981,400 shares on Oct. 14 for ¥19.31 billion, and the company referenced a ¥261 level for that off-auction repurchase. The Nov. 2 filing showed that purchases through Oct. 31 brought the cumulative total to ¥25.27 billion. As of Oct. 31, Metaplanet reported 1,267,808,197 outstanding common shares excluding treasury stock and 96,474,427 treasury shares after the transactions.

Alongside the buyback, Metaplanet has been reorganizing its financing. On Oct. 13, it announced plans to issue ¥52 billion in zero-coupon convertible bonds maturing in October 2031. The plan allocated about ¥23.6 billion toward repaying existing borrowing and up to ¥28.3 billion toward share repurchases. The bonds have an initial conversion price of ¥339 per share, above the Nov. 2 closing price. Buying back stock reduces the current share base, while future bond conversions could offset part of that reduction.

Metaplanet's capital allocation policy calls for keeping roughly 85% to 90% of its assets in Bitcoin. Its Bitcoin-backed borrowing had reached about 17.7% of Bitcoin net asset value, above its preferred 10% guideline, according to its borrowing policy. The company has said it intends to rely primarily on permanent equity for future Bitcoin purchases while using other financing instruments within its established borrowing limits.

What to watch

Metaplanet still has authorization to repurchase more shares through October 2027, and management has said future purchases will depend on market conditions. The company's convertible bond plan could expand the share count in future years if investors convert, potentially offsetting some of the reduction achieved by the buyback. The initial conversion price of ¥339 is above the current stock price. Investors are likely to watch the company's share price, mNAV and any further buyback or Bitcoin purchase announcements. The Nov. 2 filing did not disclose a precise mNAV for the repurchase period or announce a new Bitcoin acquisition.

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