Synopsis: Metaplanet’s Bitcoin-backed $500 million share buyback follows a sharp stock decline below its Bitcoin holdings’ value, aiming to restore investor confidence and strengthen long-term Bitcoin accumulation strategy.
Tokyo-listed Metaplanet Inc. announced a $500 million share buyback, backed by Bitcoin leverage, after its stock value slipped below the worth of its Bitcoin holdings. This strategic step aims to boost shareholder confidence and maximize Bitcoin yield amid market volatility.
Falling Market Value
Metaplanet’s market-based net asset value (mNAV) recently dropped to 0.88, signaling that the company’s enterprise value was falling below its Bitcoin reserves. This decline prompted the firm to launch a significant buyback program, turning to a Bitcoin-backed credit line for funds. Although the mNAV has rebounded slightly to 1.03, the company is determined to defend its Bitcoin position.
Company CEO Simon Gerovich highlighted that the buyback aims to rebuild confidence and optimize Bitcoin yield per share. The move also seeks to counter short-selling pressures, which have affected the stock, trading around a 70% decline from its peak earlier this year. Naturally, this action shows Metaplanet’s focus on long-term Bitcoin accumulation and shareholder value.
Details of the Buyback
The buyback program allows Metaplanet to repurchase up to 150 million shares, representing about 13.13% of its total issued shares. These repurchases will occur over a year, starting October 29, 2025, through trades on the Tokyo Stock Exchange. The process will be opportunistic, minimizing market impact by timing purchases carefully.
Funding for the buyback comes from a flexible $500 million credit facility collateralized by the company’s Bitcoin holdings. Metaplanet has recently acquired over 5,000 BTC, boosting its total to more than 30,800 BTC, worth roughly $3.5 billion at current prices. This credit line allows the company to leverage its Bitcoin reserves without selling any coins, giving it a strategic edge. It can also use excess funds to buy more Bitcoin or support Bitcoin-related income activities like options trading.
Market Position and Long-Term Goals
Since adopting its Bitcoin treasury strategy in mid-2024, Metaplanet has become Asia’s largest Bitcoin holder and the fourth globally. It owns approximately 30,823 BTC, acquired at an average of about $108,038 per coin, with a current market value of around $3.5 billion. The company’s long-term target remains ambitious: acquire 210,000 BTC by 2027.
Despite recent challenges, Metaplanet remains committed to its mission. Its recent activity also includes halting new Bitcoin purchases temporarily, but the company plans to continue accumulating. The use of leverage via the credit facility will help it stay on course toward its ambitious goal.
Market Outlook
Metaplanet’s move reflects broader trends among Bitcoin treasury firms, many of whom have seen their net asset values collapse amid price swings and market pressures. A recent report highlights that several firms, which issued shares based on inflated BTC valuations, have now seen their paper wealth vanish. Metaplanet, however, aims to leverage its position intelligently using debt to reinforce its Bitcoin holdings and generate income through options trading.
This buyback also positions Metaplanet as a leader in Japan’s corporate Bitcoin adoption. Its strategic leverage and disciplined approach could inspire others, especially as the sector faces increased scrutiny and volatility. Analysts see this as a signal that firms are willing to use innovative financial tools to hold onto value and push toward long-term Bitcoin goals.
As the market watches, Metaplanet’s bold step may help stabilize its stock and unlock value in its Bitcoin reserves. With this move, the firm demonstrates that even in turbulent times, strategic leverage and a clear vision can turn market pressures into opportunities.
Written By Fazal Ul Vahab C H