Metaplanet’s Strategic Move: Enhancing Value Through Share Buyback

Tokyo-based Metaplanet has revealed a strategic initiative to enhance capital efficiency and boost the per-share value of Bitcoin by launching a share buyback program. This plan will be executed when the market price dips below the net asset value, ensuring a more optimized capital structure.

How Will the Buyback be Financed?

The repurchase will involve acquiring 150 million shares and will be financially supported by a substantial loan of $500 million secured by Metaplanet’s Bitcoin holdings. The company, possessing 30,823 BTC currently valued at $3.5 billion, hopes this move will correct perceived market undervaluation. Management views the buyback scheme as a corrective measure addressing the disparity between market and intrinsic values.

The program will be active until October 29, 2026, and includes buying shares that account for 13.13% of the company’s capital. If stock values decline to fall below the asset value, the pace of buybacks might increase. A fund worth approximately 75 billion yen ($495 million) will be allocated not only for repurchases but also for potential strategic ventures.

Metaplanet aims to significantly expand its Bitcoin portfolio to 210,000 BTC by 2027. Achieving this target could reinforce the company’s status as the leading Bitcoin holder among Asia’s publicly listed firms. The strategy prioritizes Bitcoin accumulation without compromising financial flexibility, utilizing a credit structure backed by Bitcoin.

Following the announcement, Metaplanet observed a 2% surge in its stock price, reaching 499 yen. The management stressed that the loan facilities are not confined to share acquisitions but are vital for increasing Bitcoin reserves strategically. The company employs the BTC Yield metric to assess performance, underscoring its position at the forefront of cryptocurrency portfolio management.

Notable points from Metaplanet’s announcement include:

• Implementation of a share buyback program covering 13.13% of the total capital.
• Target to expand Bitcoin holdings to 210,000 BTC by 2027.
• Utilization of a $500 million Bitcoin-backed loan as financial support.
• Rising share price by 2% post-announcement.

Metaplanet’s forward-thinking strategies underscore its commitment to maintaining a robust capital framework and solidifying its dominance in the Bitcoin holding domain. The company’s initiatives aim to ensure ongoing growth and higher value delivery to shareholders.