Tokyo-listed firm Metaplanet has established a Bitcoin-collateralized credit facility to fund the repurchase of 150 million common shares. This represents 13.13% of its total issued stock, a move prompted by its market value dropping below its Bitcoin holdings.
Metaplanet's Market Value and Buyback Program
Metaplanet's market-based net asset value (mNAV) fell to 0.88 last week. This decline led the board to approve a 75 billion Japanese yen buyback program. The mNAV ratio is calculated by comparing a company's enterprise value to its Bitcoin holdings. Readings below 1.03 indicate that the stock is trading at a discount.
Credit Facility Details and Funding Flexibility
The newly established credit facility carries a maximum borrowing capacity of approximately $500 million. Metaplanet has stated that these funds can be used flexibly for either share repurchases or additional Bitcoin acquisitions. The company may also deploy this facility as bridge financing for a planned preferred share issuance.
Strategic Objectives of the Share Buyback
The buyback specifically targets 13.13% of the company's total issued shares. The primary aims are to maximize Bitcoin yield per share and to restore market confidence. Metaplanet emphasized that its current stock price does not adequately reflect its intrinsic economic value, especially considering current market volatility and the declining mNAV.
Metaplanet's Bitcoin Holdings and Acquisition Strategy
As of its Sept. 30 purchase of 5,268 tokens, Metaplanet holds 30,823 Bitcoin, valued at $3.5 billion. The company has temporarily paused new Bitcoin acquisitions due to the recent mNAV decline. However, it maintains its long-term goal of accumulating 210,000 Bitcoin by the year 2027.
Share Buyback Execution and Management's Perspective
The buyback program is scheduled to run from October 29, 2025, through October 28, 2026. Share purchases will be executed on the Tokyo Stock Exchange under a discretionary trading agreement. Management views this strategic capital allocation as a key measure to address the discount between the company's market price and its underlying asset value.
Similar Strategies in the Cryptocurrency Treasury Space
ETHZilla announced a similar $40 million share buyback on Monday, following its stock's continued trading at discounts. This company has already repurchased approximately 600,000 shares, valued at $12 million, since October 24, as part of its larger $250 million program. Multiple cryptocurrency treasury firms have been exploring comparable strategies to address market value gaps. These companies are continuing to accumulate digital assets while actively managing shareholder expectations through various capital allocation methods, including buybacks and strategic financing arrangements.