Metaplanet plans to issue ¥52 billion in zero-interest convertible bonds to repay part of its Bitcoin-backed debt and fund share buybacks. Its borrowing ratio sits above the level its own policy sets.
Metaplanet plans to issue ¥52 billion, approximately $340 million, in zero-interest convertible bonds due in 2031. The Japanese Bitcoin treasury company will use the money to repay Bitcoin-backed loans and repurchase its own shares.
Bond terms and use of proceeds
The company disclosed the plan in an October 13 filing with the Tokyo Stock Exchange. It expects approximately ¥51.9 billion in net proceeds, with ¥23.6 billion going to debt repayment and up to ¥28.3 billion to buybacks.
The bonds are unsecured, carry no periodic interest and mature on October 29, 2031. Merrill Lynch International has been appointed sole bookrunner and lead manager for the offering, which excludes the United States. Crypto Briefing reports that the bonds are being issued at 102.5% of par.
Debt sits above the company's own limit
Metaplanet held 44,000 BTC as of September 30. It had also borrowed approximately $650 million through a Bitcoin-backed facility allowing up to $800 million.
That borrowing reached approximately 17.7% of its Bitcoin net asset value at the end of September. Its policy says such borrowing should generally stay below 10%. The company said lower Bitcoin prices could push the ratio higher.
The new financing would replace part of its interest-bearing, Bitcoin-collateralized debt, and the company expects it to reduce borrowing costs. Crypto Briefing calls the ¥23.6 billion repayment a step toward the 10% target, not a full reset.
The bonds will not cut debt right away. The filing acknowledged that the issuance would initially increase total liabilities. Debt would fall only if investors converted the bonds into shares or the company repaid other obligations.
Buybacks target Bitcoin per share
Metaplanet has allocated up to ¥28.3 billion to repurchase ordinary shares between October and December 2026. The filing identified an off-market purchase of up to ¥25.3 billion through the ToSTNeT-3 system, planned for October 14.
If the company uses the full ¥25.3 billion, the filing estimates that approximately 97.94 million shares could be repurchased, roughly 7.1% of issued ordinary shares. Metaplanet said buying back shares when its market value is below the value of its Bitcoin could increase the Bitcoin backing of the remaining shares.
The filing says the financing will not directly fund additional Bitcoin purchases.
Sources: crypto.news, Crypto Briefing
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