Metaplanet said it will issue 52 billion yen ($329 million) in zero-coupon, euro-yen convertible bonds due in 2031, using the proceeds to restructure its debt and fund a share repurchase program without selling any of its Bitcoin holdings. Convertible bonds give holders the right to convert the debt into shares under specified terms.

According to a Tuesday announcement, the Japanese investment and Bitcoin treasury company plans to direct about 23.6 billion yen ($149 million) of the net proceeds toward repaying Bitcoin-collateralized loans, with the remaining roughly 28.3 billion yen ($179 million) earmarked for share buybacks. The bonds carry no interest and mature five years, meaning the company will pay no periodic coupons before redeeming them in 2031. Key details to track as the plan is carried out include how quickly the bitcoin-collateralized loans are retired, how much of the buyback is executed, and the conversion terms attached to the 2031 maturity.

The repurchases fall under Metaplanet's newly launched share buyback program, which targets up to 60 billion yen ($380 million) in total repurchases. Buybacks of this kind reduce the number of shares outstanding, concentrating ownership among remaining holders.

The company said the move is intended to improve its debt structure by reducing its reliance on loans collateralized by its Bitcoin (BTC) holdings, allowing it to deleverage without liquidating any of its crypto reserves. Collateralized borrowing of this type is secured against the pledged bitcoin, meaning a decline in the collateral's value can trigger margin calls or forced sales; paying the loans down with bond proceeds reduces that dependency while leaving the reserves untouched. Metaplanet ranks as the second-largest Bitcoin treasury firm, with 44,000 BTC in total holdings worth $3.6 billion, according to BitcoinTreasuries.

Despite the announcement, Metaplanet's shares closed 1.5% lower in Tokyo on Tuesday, extending a 52.6% decline over the past 12 months, according to Yahoo Finance.

The bond issuance follows a revised capital allocation framework that Metaplanet unveiled earlier this month, which proposes allocating up to 15% of total assets to strategic investments to support its Bitcoin accumulation and dividend payments.

The company has also faced shareholder pushback in recent months. In September, management drew criticism for expanding Metaplanet's Series 10 executive stock option pool almost sevenfold. On Sept. 11, the Tokyo-based firm announced plans to cut the stock pool by 41%, reducing the number of potential shares underlying the rights by 131.3 million — from 319.464 million to 188.19 million — returning it to the level before the company's September 2025 international share offering.

Related: Metaplanet buys 2,823 BTC, surpasses 43,000 in Bitcoin holdings