Metaplanet Launches $500M Bitcoin Buyback to Address Valuation Gap
Tokyo-listed Metaplanet has rolled out an aggressive ¥75 billion share repurchase program. The Bitcoin treasury company announced the $500 million buyback after its market value dropped below its cryptocurrency holdings. This move marks a significant shift in corporate Bitcoin strategy across Asia.
The program allows Metaplanet to repurchase up to 150 million common shares, representing 13.13% of total issued shares. The repurchase will continue until October 28, 2026, on the Tokyo Stock Exchange, as the company seeks to restore investor confidence and maximize Bitcoin yield per share.
Bitcoin-Backed Credit Facility Funds Metaplanet Buyback
Metaplanet established a Bitcoin-backed credit line with a borrowing capacity of around $500 million. This facility enables flexible funding for share repurchases or additional Bitcoin acquisitions. The credit structure allows the company to leverage its digital assets without liquidating holdings.
The Japanese firm currently holds 30,823 BTC on its balance sheet. These Bitcoin holdings are valued at approximately $3.5 billion. The credit facility provides strategic liquidity while preserving the company’s long-term accumulation goals.
Market-to-Net-Asset Value Drives Metaplanet Bitcoin Strategy
Metaplanet’s market-based net asset value (mNAV) dropped to as low as 0.88 last week before rebounding. The metric currently stands at 1.03, showing signs of recovery. When mNAV falls below 1.0, the stock trades at a discount to Bitcoin holdings value.
The Japanese firm is the first major digital asset treasury company to trade consistently below the value of its crypto reserves. This valuation gap prompted the board to approve the comprehensive buyback program. The company believes market volatility has created a disconnect between stock price and intrinsic value.
Metaplanet Buyback Aims to Enhance BTC Yield Per Share
The share repurchase program focuses on improving capital efficiency. By repurchasing shares, the firm reduces the number of outstanding shares in circulation, effectively increasing the Bitcoin exposure per share. This creates better returns for existing shareholders as Bitcoin appreciation continues.
Metaplanet shares closed at JPY 499 on October 28, up 2.25% from the previous session. The stock has rebounded nearly 19% over five days following the announcement. Market response indicates renewed confidence in the company’s Bitcoin-focused strategy.
Corporate Bitcoin Treasury Faces New Challenges
Metaplanet is now Asia’s largest listed Bitcoin treasury and the fourth-largest globally. The company has built this position through consistent accumulation since April 2024. However, the firm has halted new Bitcoin purchases amid the drop in mNAV.
Metaplanet claimed it remains committed to acquiring 210,000 BTC by 2027. This target represents roughly 1% of Bitcoin’s total supply. The buyback program and credit facility are designed to support this ambitious objective while managing shareholder value.
Bitcoin Buyback Strategy Reflects Industry Trends
Metaplanet’s approach mirrors broader challenges facing Bitcoin treasury companies. Other firms have also implemented similar programs to address valuation discounts. ETHZilla announced a $40 million share buyback as its stock trades at a sharp discount to NAV.
The credit facility gives Metaplanet multiple strategic options moving forward. Funds can support share repurchases, additional Bitcoin acquisitions, or investments in Bitcoin income streams. This flexibility allows the company to respond dynamically to market conditions.
Conclusion
Metaplanet’s Bitcoin buyback represents a critical test for corporate cryptocurrency strategies. The program demonstrates how traditional financial tools can address unique challenges in digital asset markets. Success could establish a blueprint for other Bitcoin treasury companies navigating similar valuation pressures.
