Metaplanet Unveils $500 Million Bitcoin-Backed Share Buyback

Metaplanet Inc., a bitcoin treasury firm listed on the Tokyo Stock Exchange (TSE: 3350), has announced a share repurchase program valued at up to ¥75 billion (approximately $500 million). The initiative aims to buy back as many as 150 million common shares, representing 13.13% of its issued shares, excluding treasury stock. This buyback will take place from October 29, 2025, to October 28, 2026, with purchases executed under a discretionary trading agreement on the Tokyo Stock Exchange.

To finance this initiative, Metaplanet has secured a bitcoin-collateralized credit facility that allows for borrowing up to $500 million. The company stated that these funds could be utilized not only for share repurchases but also for acquiring additional bitcoin or addressing other capital allocation needs. Following the announcement, shares of Metaplanet were trading around ¥499.

Strategic Response to Market Valuation

Management has positioned this buyback as part of a broader strategy to enhance “BTC Yield” per share, particularly when the market undervalues the company relative to its bitcoin assets. The firm emphasized its commitment to acquiring a total of 210,000 BTC by the end of 2027, asserting that its stock price does not adequately reflect its intrinsic economic value.

The decision comes after Metaplanet’s market-based net asset value (mNAV)—which compares the company’s enterprise value to the market value of its bitcoin holdings—fell below 1.0 last week. This drop indicated a significant discount to the company’s bitcoin reserves. As market conditions stabilized, analytics showed the mNAV ratio approaching parity. The company has temporarily halted new bitcoin purchases to focus on executing the repurchase plan. In its last disclosure, Metaplanet reported adding 5,268 BTC at the end of September, bringing its total to 30,823 BTC, making it one of the largest public corporate holders of bitcoin in Asia.

Wider Context in the Digital Asset Market

The buyback strategy aligns with actions taken by other digital-asset treasury firms facing similar valuation challenges. For instance, ETHZilla, focused on Ether, initiated a $40 million share buyback amid its stock trading at a significant discount to net asset value. The current credit conditions remain a critical focus for companies heavily exposed to bitcoin.

S&P Global Ratings recently assigned a B-rating with a stable outlook to the company formerly known as MicroStrategy, now called “Strategy.” The agency highlighted concerns over heavy bitcoin concentration, limited diversification, and low liquidity in US dollars. This rating underscores the challenges related to leverage and asset concentration that impact funding costs across the sector.

If Metaplanet successfully closes the mNAV gap through this buyback, it could increase the bitcoin held per share, reinforcing confidence in its balance sheet strategy. The pace of repurchases will be contingent upon market liquidity, collateral thresholds associated with the bitcoin-backed credit line, and the stock’s trading range on the Tokyo Stock Exchange. This strategic move marks a significant step in Metaplanet’s ongoing efforts to optimize its capital allocation amidst fluctuating market dynamics.