TLDR
- Tokyo-based Metaplanet introduced a $500 million share repurchase plan backed by Bitcoin collateral after stock fell below asset value
- The buyback covers up to 150 million shares representing 13.13% of outstanding stock through October 2026
- Company holds 30,823 BTC valued at $3.5 billion but stopped buying more Bitcoin as mNAV ratio dropped to 0.88
- Bitcoin-backed credit line provides $500 million for share purchases, additional BTC acquisitions, or bridge financing
- Similar treasury companies like ETHZilla face stock discount issues while S&P gave Strategy a “B-” speculative rating
Metaplanet Inc. revealed a 75 billion yen share buyback program on Tuesday. The Tokyo-listed Bitcoin treasury firm acted after its market value fell below its cryptocurrency holdings.
The company can purchase up to 150 million common shares under the program. This equals 13.13% of all shares currently issued.
Metaplanet arranged a Bitcoin-collateralized credit facility worth $500 million. The funds will support share repurchases and potential Bitcoin purchases.
The buyback window opens Wednesday and closes October 28, 2026. Metaplanet will execute trades on the Tokyo Stock Exchange using a discretionary agreement.
Stock Price Falls Below Bitcoin Asset Value
The company’s market-based net asset value (mNAV) dropped to 0.88 last week. This ratio divides market capitalization by the value of Bitcoin holdings.
An mNAV below 1.0 means shares trade at a discount to underlying Bitcoin assets. The metric has since bounced back to 1.03.
Metaplanet paused Bitcoin acquisitions during the mNAV slump. The firm currently owns 30,823 BTC worth approximately $3.5 billion.
The company last bought 5,268 BTC on September 30. Metaplanet still plans to reach 210,000 BTC by end of 2027.
Company officials said the stock price fails to match true economic value. They pointed to increased market volatility as the cause.
Treasury Firms Struggle With Valuation Gaps
ETHZilla launched a $40 million buyback program on Monday. The company’s shares also trade below their net asset value.
Since October 24, ETHZilla bought back 600,000 shares for $12 million. These purchases are part of a broader $250 million repurchase plan.
Analysis from 10x Research showed NAV collapses at several Bitcoin treasury firms. The research found retail investors faced losses as companies bought Bitcoin at premium valuations.
S&P Global Ratings assigned a “B-” rating to Strategy. The Michael Saylor-led company received the speculative grade designation.
S&P expressed concerns about heavy Bitcoin concentration. The agency also flagged weak capitalization and limited business diversity.
Buyback Aims to Improve Shareholder Value
Metaplanet stock rose 2% to 499 yen following the announcement. Management said the program will boost Bitcoin yield per share.
The credit arrangement offers flexible capital deployment options. Metaplanet can adjust between stock purchases and Bitcoin buying based on conditions.
The facility could function as temporary financing. The company intends to issue preferred shares down the road.
As Asia’s biggest publicly traded Bitcoin holder, Metaplanet seeks to narrow the discount. The buyback strategy targets the gap between share price and Bitcoin holdings.
The credit line may also support additional cryptocurrency investments. This gives Metaplanet multiple options for using the borrowed funds.
Metaplanet’s board approved the entire repurchase framework. The company emphasized its long-term Bitcoin accumulation strategy remains intact.
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