Metaplanet, the Japanese company that holds Bitcoin as a treasury asset, announced a ¥60 billion ($380 million) share buyback program on Oct. 13, after its stock fell nearly 90% from its June 2025 peak. The move will be funded in part by a ¥52 billion ($329 million) zero-coupon convertible bond sale, with proceeds earmarked for repaying Bitcoin-backed loans and repurchasing shares.

The announcement pairs the buyback with a refinancing of debt secured by the company's Bitcoin, whose value relative to reserves had climbed above the firm's own 10% risk threshold.

Bond Sale to Trim Bitcoin-Backed Debt

Under the refinancing plan, Metaplanet said it will issue ¥52 billion ($329 million) in zero-coupon convertible bonds due in 2031, according to the company's official disclosure. The bonds are unsecured and will be listed on the Singapore Exchange. The offering targets investors mainly in Europe and Asia and is expected to close on Oct. 29.

Because the bonds pay no regular interest, Metaplanet can replace part of its interest-bearing debt — which is secured by its Bitcoin — without selling any of its holdings. As of Sept. 30, the company owed about $649.5 million under an $800 million credit facility backed by its Bitcoin, equal to 17.7% of the value of its Bitcoin reserves and above its own limit of 10%. Metaplanet held 44,000 Bitcoin at the end of September and said further drops in Bitcoin's price could push the borrowing ratio higher.

Metaplanet plans to use about ¥23.6 billion ($149 million) from the bond sale to repay loans in November. That would cut its borrowing to about $500.5 million and lower the ratio to roughly 13.6% — still above its target, leaving the company above its own 10% threshold even after the repayment. Investors can demand repayment of the bonds after three years, which could force the company to refinance before 2031.

Buyback Begins as Shares Slide

Up to ¥28.3 billion ($179 million) from the bond sale will fund share repurchases under the new ¥60 billion ($380 million) buyback program, which allows Metaplanet to buy back up to 200 million shares, or about 14.7% of its stock, through Oct. 13, 2027. The company also canceled its previous ¥75 billion ($475 million) buyback plan from October 2025, under which it had not bought any shares.

The buyback starts on Oct. through the Tokyo Stock Exchange's ToSTNeT-3 off-auction system. Metaplanet is targeting up to 96.9 million shares for about ¥25.3 billion ($160 million), which could cut its share count by about 7.1%.

Metaplanet shares have fallen about 36% this year, closing at ¥261 on Oct. 13. The stock peaked at ¥1,930 in June 2025, leaving it nearly 90% below that high. Strategy, the largest public company holding Bitcoin, is up about 1% this year — in contrast to Metaplanet's decline. That company generally avoids issuing new shares when its market value falls below the value of its Bitcoin holdings, and buying back shares could help Metaplanet improve that measure.

Chief Executive Simon Gerovich has agreed to lend up to 55 million of his own shares through his family holding company. The shares will support hedging by bond investors, for an annual fee of 0.75%. Investors who borrow those shares could sell them, which could create selling pressure while the company is buying back stock. The bonds could also dilute shareholders if converted into stock; Metaplanet has not yet set the final conversion price.

Several near-term dates frame what comes next: buyback purchases begin Oct. 14, the bond offering is expected to close on Oct. 29, and the loan repayment is planned for November.

This article was first reported by Blockonomi.