Metaplanet Shares Jump 5.5% As Bitcoin Firm Unveils $500M Share Buyback Plan

Metaplanet shares surged 5.5% after the company announced plans for a $500 million share buyback funded through a new credit facility.

The Japan-based firm said in a statement today that its board had approved a new capital allocation policy that includes repurchasing shares, pausing equity raises when its market value falls below its Bitcoin net asset value, and optimizing its use of preferred stock.

CEO Simon Gerovich said the goal is to “maximize BTC Yield and long-term corporate value.” 

While a maximum of $500 million can be allocated to buy back up to about 13% of Metaplanet shares, the company said the credit facility would also provide flexibility for ”Bitcoin acquisitions, and other financing uses.”

Metaplanet’s surge today extended its gain over the past week to more than 12%, according to Yahoo Finance, but it remains more than 9% down over the past month.

Metaplanet share price (Source: Yahoo Finance)

Metaplanet Plans New Capital Allocation Policy

Metaplanet announced its new capital allocation policy on X after the company’s board of directors agreed on it earlier today. 

It will focus on three fundamental principles. First, it will promote the effective use of perpetual preferred shares to boost the company’s BTC yield. 

There will also be a pause in capital raising through common share issuance when Metaplanet’s mNAV, which is its entity value divided by its Bitcoin NAV, falls below 1. 

Lastly, the company will execute share buybacks to maximize BTC yield as well.

“Amid heightened market volatility and fluctuations in mNAV, the Company believes that expanding its strategic optionality—through flexible capital allocation and diversified financing tools—is essential to optimizing long-term value for shareholders,” Metaplanet said.

“This includes the ability to repurchase shares when they are undervalued, acquire Bitcoin accretively, or scale new income-generating opportunities in line with market conditions,” it added. 

Metaplanet said that funding sources for the share repurchases may include cash, proceeds from preferred share issuances, credit facilities, and income that it generates from its Bitcoin income generation business. 

Metaplanet’s Value Briefly Dropped Below The Value Of Its Bitcoin Holdings

Metaplanet is listed on the Tokyo stock exchange and now is the fourth-largest corporate holder of BTC globally and biggest in Asia. 

Top ten largest corporate BTC holders (Source: Bitcoin Treasuries)

Metaplanet holds more Bitcoin than Trump Media & Technology Group, crypto exchange Coinbase, and crypto mining firms Riot Platforms, Cleanspark, and Hut 8.

While the company has managed to climb the Bitcoin treasury rankings, Metaplanet has seen its share price trade in a prolonged downtrend. This stock price struggle saw the firm’s enterprise value briefly drop below the value of its massive Bitcoin reserves, according to a Bloomberg report. 

For digital asset treasury firms such as Metaplanet, trading at a discount is significant because it impacts the company’s ability to raise more capital for crypto purchases. 

In response to the declining enterprise value, Metaplanet decided to pause its capital raise to buy more Bitcoin, and suspended the exercise of its 20th and 22nd series of stock acquisition rights. 

Gerovich announced the move on X, but said that Metaplanet “has a strong foundation for growth and has developed the ability to harness a variety of financing tools.”