Japanese Bitcoin Holder Metaplanet Issues $329M in Bonds to Reduce Crypto-Backed Loans

Key Points

• Metaplanet has initiated a ¥60 billion ($380 million) stock repurchase initiative targeting as many as 200 million shares.
• The firm intends to secure ¥52 billion ($329 million) via zero-coupon convertible bonds maturing in 2031.
• Approximately $149 million in proceeds will go toward retiring Bitcoin-collateralized debt after the loan-to-value ratio hit 17.7%, exceeding the company’s 10% internal threshold.
• The company’s stock price has declined roughly 36% year-to-date and approximately 90% since reaching its June 2025 high.
• Chief Executive Simon Gerovich will make available up to 55 million of his personal shares to facilitate bond investor hedging activities.

Metaplanet, the Tokyo-based firm that maintains Bitcoin as a corporate treasury reserve, has rolled out a $380 million stock repurchase program following a dramatic decline in its equity value from peak levels.

Simultaneously, the organization intends to secure $329 million through a convertible debt offering. Proceeds will be allocated toward settling Bitcoin-collateralized borrowings and executing the share buyback.

Convertible Bond Issuance Aims to Refinance Crypto-Collateralized Borrowings

On Oct. 13, Metaplanet disclosed plans to raise ¥52 billion ($329 million) through zero-coupon convertible bonds with a 2031 maturity date. These unsecured instruments will trade on the Singapore Exchange.

The debt offering is primarily directed at institutional buyers across European and Asian markets. The transaction is scheduled to conclude on Oct. 29.

Because these bonds carry no periodic interest payments, the company can substitute a portion of its interest-accruing debt—which is collateralized by Bitcoin holdings—without liquidating any digital assets.

As of the close of September, Metaplanet carried approximately $649.5 million in outstanding obligations under an $800 million credit line backed by its cryptocurrency reserves. This represented 17.7% of its Bitcoin holdings’ value, surpassing the firm’s self-imposed 10% ceiling.

The enterprise possessed 44,000 Bitcoin as of September’s end. Management noted that additional declines in Bitcoin’s market price could further elevate this leverage ratio.

Metaplanet intends to allocate roughly ¥23.6 billion ($149 million) of the bond proceeds toward November loan repayments. This would reduce total borrowings to approximately $500.5 million and bring the ratio down to around 13.6%—still exceeding the company’s targeted threshold.

Bondholders retain the option to demand early repayment after a three-year period, potentially requiring the company to seek refinancing well ahead of the 2031 maturity.

Share Repurchase Program Activated Following Significant Stock Price Decline

As much as ¥28.3 billion ($179 million) from the convertible bond transaction will finance stock purchases under the newly established ¥60 billion ($380 million) buyback authorization.

The company simultaneously terminated its prior ¥75 billion ($475 million) repurchase program announced in October 2025. No shares were acquired under that earlier authorization.

The current program permits Metaplanet to reacquire up to 200 million shares, representing approximately 14.7% of outstanding stock, through Oct. 13, 2027.

Metaplanet’s stock has dropped roughly 36% during the current calendar year, ending at ¥261 on Oct. 13. Shares reached ¥1,930 in June 2025. By comparison, Strategy, the largest publicly traded corporate Bitcoin holder, has gained approximately 1% year-to-date.

The firm typically refrains from issuing additional equity when its market capitalization trades below the aggregate value of its Bitcoin treasury. Reducing the share count through buybacks may help improve this valuation metric.

Chief Executive Simon Gerovich has committed to lending as many as 55 million shares from his personal holdings via his family investment vehicle. These shares will facilitate hedging transactions by bond purchasers, generating an annual fee of 0.75% for Gerovich.

Investors borrowing these shares may subsequently sell them short, potentially creating downward price pressure during the period when the company is actively repurchasing stock.

The convertible bonds also carry the risk of shareholder dilution if holders elect to convert their debt into equity. Metaplanet has not yet determined the final conversion price.

The repurchase initiative commences on Oct. 14 via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading platform. The company aims to acquire up to 96.9 million shares for approximately ¥25.3 billion ($160 million), potentially reducing the total share count by roughly 7.1%.