Tokyo-listed Bitcoin treasury firm Metaplanet Inc. has unveiled a 75 billion Japanese yen (around $500 million) share repurchase program backed by a Bitcoin-collateralized credit facility. This move comes after a decline in its market-based net asset value (mNAV) falling below 1.
In an announcement on Tuesday, the company stated that the program aims to maximize Bitcoin yield per share and restore market confidence, particularly as its stock trades below the value of its Bitcoin holdings.
The share buyback program, which has received board approval, allows for the repurchase of up to 150 million common shares. This represents 13.13% of the company's total issued shares. The repurchase period is scheduled to run from October 29, 2025, to October 28, 2026, with purchases executed on the Tokyo Stock Exchange under a discretionary trading agreement.
To facilitate this plan, Metaplanet has established a Bitcoin-backed credit line. This facility provides a borrowing capacity of approximately $500 million, offering flexible funding options for either share repurchases or additional Bitcoin acquisitions. The company also indicated that the facility could serve as bridge financing for a planned preferred share issuance.
Metaplanet's mNAV Drops Below 1
Metaplanet's market-based net asset value (mNAV), which is a ratio comparing the company's value to its Bitcoin holdings, recently dropped to as low as 0.88 before rebounding. The metric currently stands at 1.03.
Amidst this drop in mNAV, the company has temporarily halted new Bitcoin purchases. Metaplanet currently holds 30,823 BTC, valued at approximately $3.5 billion on its balance sheet. This follows its most recent acquisition of 5,268 BTC on September 30. Despite these fluctuations, Metaplanet has affirmed its commitment to its long-term goal of acquiring 210,000 BTC by 2027.
In a separate development, ETHZilla also announced a $40 million share buyback program on Monday, as its stock continues to trade at a significant discount to its net asset value. The company reported that it had already repurchased approximately 600,000 shares, valued at $12 million, since October 24, as part of its larger $250 million buyback initiative.
A recent report from 10x Research highlighted that Bitcoin treasury firms have experienced a substantial collapse in their NAVs, resulting in billions of dollars in paper wealth being erased. The analysts noted that the surge in Bitcoin treasury companies, which issued shares at multiples of their actual Bitcoin value, has fully reversed. This has led to significant losses for retail investors, while these firms have managed to accumulate real Bitcoin.
S&P Assigns "B-" Rating to Michael Saylor's Strategy
In related news, S&P Global Ratings has assigned a "B-" credit rating to Michael Saylor's Strategy. This rating classifies the strategy as speculative and non-investment grade, although it carries a stable outlook.
The rating agency identified several key vulnerabilities for the strategy, including its heavy concentration in Bitcoin, limited business diversification, weak capitalization, and low U.S. dollar liquidity.