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ZEC $1,240 Metaplanet raises $329 million, launches $380 million buyback after 90% stock collapse
The Japanese Bitcoin company is refinancing debt and repurchasing shares as its leverage ratio exceeds internal limits.
Key takeaways
- Debt reduction target. Metaplanet will use $149 million to cut borrowing to $500.5 million, aiming to lower its leverage ratio from 17.7% to 13.6%.
- Buyback scope. The program targets up to 96.9 million shares worth $160 million in the first phase, potentially reducing share count by 7.1%.
- Bitcoin holdings stable. Metaplanet held 44,000 BTC at end of September and does not plan to sell any cryptocurrency to fund the restructuring.
What happened
Metaplanet announced on October 13 that it will issue $329 million in unsecured, zero-coupon convertible bonds due in 2031, with the offering expected to close on October 29. The Japanese Bitcoin treasury company plans to use the proceeds to refinance debt and fund share buybacks after its stock price collapsed 90 percent from its peak.
The company will allocate $149 million toward repaying Bitcoin-backed loans in November, reducing its outstanding debt from $649.5 million to approximately $500.5 million. This repayment addresses Metaplanet's overleveraged position, with its borrowing ratio at 17.7 percent of reserve value, well above its 10 percent internal guideline.
The company authorized a new $380 million buyback program to repurchase up to 200 million shares, or approximately 14.7 percent of outstanding stock, through October 13, 2027. The initial phase targets up to 96.9 million shares for $160 million starting October 14 through the Tokyo Stock Exchange's off-auction system.
Metaplanet terminated a previous $475 million buyback authorization from October 2025 under which it had acquired no shares. The convertible bonds will mature in 2031 but investors can demand repayment after three years, potentially forcing earlier refinancing.
First $84.4KLatest $83.1K-1.5% over the period
Points are daily observations, not closing prices.
Why it matters
Metaplanet holds 44,000 BTC and had decided not to sell any cryptocurrency to fund the restructuring, instead replacing interest-bearing debt with zero-coupon bonds to reduce financing costs and free up pledged collateral. The company remains exposed to Bitcoin price declines, even after the planned $149 million repayment, its borrowing ratio would settle at 13.6 percent, still above the 10 percent target.
CEO Simon Gerovich agreed to lend up to 55 million of his own shares through his family company to support hedging by bond investors for an annual fee of 0.75 percent. The share buyback could face headwinds if those shares are sold by investors, creating selling pressure while Metaplanet attempts to repurchase stock.
If the buyback fully executes, Metaplanet's share count could decline by about 7.1 percent. The convertible bonds could further dilute shareholders if converted to stock, though the company has not yet set the final conversion price.
Questions readers ask
Why is Metaplanet issuing bonds instead of selling Bitcoin?
The company prefers to retain its 44,000 BTC holdings while refinancing debt. Zero-coupon bonds allow Metaplanet to replace interest-bearing, Bitcoin-collateralized loans without selling cryptocurrency, reducing financing costs and freeing up pledged collateral.
How much will the buyback reduce Metaplanet's share count?
If fully executed, the program could reduce outstanding shares by approximately 7.1 percent. The initial phase targets 96.9 million shares valued at $160 million.
Will Metaplanet achieve its 10 percent leverage target?
No. Even after allocating $149 million to repay debt, Metaplanet's borrowing ratio would settle around 13.6 percent, still above its 10 percent internal guideline, leaving the company exposed to further Bitcoin price declines.
When can bond investors demand repayment?
Although the bonds mature in 2031, investors can demand repayment after three years, potentially forcing Metaplanet to refinance earlier than the stated maturity date.
