Metaplanet to issue convertible bonds to refinance debt and fund buybacks

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Metaplanet convertible bonds and buyback

Highlights

Metaplanet will issue ¥52 billion ($329 million) in zero-coupon, euro-yen convertible bonds due 2031, allocating ¥23.6 billion ($149 million) to repay Bitcoin-collateralized loans and ¥28.3 billion ($179 million) to buybacks.
The buyback program targets up to ¥60 billion ($380 million) in repurchases and aims to reduce debt reliance on Bitcoin-backed borrowing while preserving the company’s 44,000 BTC ($3.6 billion) holdings.
Metaplanet shares closed 1.5% lower in Tokyo Tuesday, extending a 52.6% twelve-month decline amid governance pressures and recent executive stock option pool reductions.

Bond issuance and capital allocation

As reported by Cointelegraph, Metaplanet says it will issue 52 billion yen, about $329 million, in zero-coupon, euro-yen convertible bonds due in 2031.

The company plans to use about 23.6 billion yen, or $149 million, of the net proceeds to repay Bitcoin-collateralized loans, and about 28.3 billion yen, or $179 million, for share buybacks, according to a Tuesday announcement. The buybacks form part of a broader repurchasing program targeting up to 60 billion yen, about $380 million, in total purchases.

Metaplanet says the financing is intended to improve its debt structure by reducing reliance on Bitcoin-backed borrowing without selling any of its Bitcoin holdings. According to BitcoinTreasuries, the company holds 44,000 BTC, valued at about $3.6 billion, making it the second-largest Bitcoin treasury firm.

Share performance and governance pressure

Metaplanet shares close 1.5% lower in Tokyo on Tuesday, extending their decline to 52.6% over the past 12 months, according to Yahoo Finance.

Earlier this month, the company outlined a revised capital allocation framework that proposes allocating up to 15% of total assets to strategic investments tied to Bitcoin accumulation and dividend payments.

Management also faces shareholder criticism over executive equity incentives. In September, Metaplanet drew objections after expanding its Series 10 executive stock option pool by nearly seven times, before saying on Sept. 11 that it would cut the 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, restoring it to the level that existed before its September 2025 international share offering.

Our earlier article on Hualu Holdings’ proposed offshore bond issuance detailed plans to sell guaranteed senior unsecured notes to refinance existing offshore debt. We explained how the bond’s rating is aligned with the company’s issuer default ratings, meaning any upgrade or downgrade would be mirrored in the notes’ rating.

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