Metaplanet to issue $329M convertible bonds to pay debt, fund share buybacks

Metaplanet plans to issue zero-interest bonds with a five-year maturity to improve its debt structure and cut its reliance on Bitcoin-collateralized loans without selling holdings.

Metaplanet will issue 52 billion yen ($329 million) in zero-coupon, euro-yen convertible bonds due in 2031.

Japanese investment and Bitcoin treasury company plans to use about 23.6 billion yen ($149 million) of the net proceeds to repay Bitcoin-collateralized loans and about 28.3 billion yen ($179 million) for share buybacks, according to a Tuesday announcement.

The buybacks are part of Metaplanet’s new share repurchasing program, which targets up to 60 billion yen ($380 million) in total buybacks.

The proceeds seek to improve the treasury company’s debt structure by reducing its reliance on Bitcoin-collateralized loans without selling any Bitcoin (BTC) holdings. Metaplanet ranks as the second-largest Bitcoin treasury firm, with 44,000 BTC in total holdings, worth $3.6 billion, according to BitcoinTreasuries.

Metaplanet’s share price closed 1.5% lower in Tokyo on Tuesday, adding to its 52.6% 12-month slide, according to Yahoo Finance.

Earlier this month, Metaplanet revealed a revised capital allocation framework proposing to allocate up to 15% of total assets to strategic investments to fund its Bitcoin accumulation and dividend payments.

In September, management drew shareholder criticism for expanding Metaplanet’s Series 10 executive stock option pool almost sevenfold. On Sept. 11, the Tokyo-based company shared plans to cut the stock pool by 41% by reducing the number of potential shares underlying the rights by 131.3 million, from 319.464 million to 188.19 million, the level before its September 2025 international share offering.

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

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