tl;dr
Tokyo-listed Metaplanet Inc. launches a $500M share repurchase program backed by Bitcoin collateral to stabilize its stock after a sharp decline in its market-based net asset value (mNAV). The move aims to restore investor confidence amid Bitcoin market volatility and broader challenges in the Bitco...
**Metaplanet Inc. Launches $500M Share Repurchase Program Amid Bitcoin Market Volatility**
Tokyo-listed Bitcoin treasury company Metaplanet Inc. has announced a bold move to stabilize its stock and bolster investor confidence, unveiling a 75 billion Japanese yen ($500 million) share repurchase program backed by a Bitcoin-collateralized credit facility. The decision follows a sharp decline in the company’s market-based net asset value (mNAV), which fell below 1, signaling concerns over its stock valuation relative to its Bitcoin holdings.
### **Rebuilding Confidence Through Share Buybacks**
In a Tuesday statement, Metaplanet emphasized that the repurchase initiative aims to maximize Bitcoin yield per share and restore market trust. The program, approved by the company’s board, permits the repurchase of up to 150 million common shares—13.13% of its total issued shares—through purchases on the Tokyo Stock Exchange. The buyback will run until October 28, 2026, under a discretionary trading agreement.
To fund the repurchase, Metaplanet established a Bitcoin-backed credit line with a $500 million borrowing capacity. This facility not only enables flexible funding for share repurchases but could also serve as bridge financing for a planned preferred share issuance. The move underscores the company’s reliance on its Bitcoin reserves to navigate market fluctuations.
### **mNAV Decline Sparks Strategic Shift**
Metaplanet’s mNAV, a metric comparing the company’s market value to its Bitcoin holdings, plummeted to 0.88 last week before rebounding to 1.03. The drop below 1 raised questions about the company’s valuation, prompting it to halt new Bitcoin purchases. Despite this pause, Metaplanet currently holds 30,823 BTC (valued at approximately $3.5 billion) on its balance sheet, following a recent acquisition of 5,268 BTC on September 30. The firm remains committed to its goal of accumulating 210,000 BTC by 2027.
### **Industry-Wide Challenges and Comparative Moves**
Metaplanet’s actions come amid broader volatility in the Bitcoin treasury sector. A recent report by 10x Research highlighted that several firms in the space have seen their net asset values (NAV) collapse, erasing billions in paper wealth. Analysts noted that the initial boom in Bitcoin treasury companies—many of which issued shares at premiums to their actual BTC holdings—has “fully round-tripped,” leaving retail investors with significant losses while firms accumulated real Bitcoin.
Other companies have mirrored Metaplanet’s strategy. On Monday, ETHZilla announced a $40 million share buyback as its stock traded at a steep discount to NAV. Since October 24, ETHZilla has repurchased around 600,000 shares worth $12 million under a $250 million program.
### **Risks and Ratings in the Bitcoin Treasury Space**
S&P Global Ratings recently assigned a “B-” credit rating to Michael Saylor’s Strategy, classifying it as speculative and non-investment grade. The agency cited risks such as heavy Bitcoin concentration, limited business diversification, weak capitalization, and low U.S. dollar liquidity. While the outlook is stable, the rating highlights the inherent vulnerabilities of companies relying heavily on cryptocurrency assets.
### **Looking Ahead**
Metaplanet’s repurchase program and Bitcoin-backed credit facility represent a strategic effort to align its stock price with its underlying asset value. As the Bitcoin treasury sector grapples with market volatility and regulatory scrutiny, companies like Metaplanet must balance growth ambitions with the need to protect shareholder value. For investors, the moves underscore the complex interplay between cryptocurrency assets, traditional finance, and the evolving landscape of digital wealth management.
In a market where fortunes can shift rapidly, Metaplanet’s actions may serve as a bellwether for how Bitcoin treasury firms navigate the challenges and opportunities of the crypto economy.