TL;DR
Metaplanet will issue $329 million in zero-interest convertible bonds maturing in 2031 to restructure its debt and finance share buybacks.
The company will allocate approximately $149 million to repay Bitcoin-backed loans and another $179 million to repurchase shares.
Metaplanet holds 44,000 BTC, worth approximately $3.6 billion, and aims to reduce its debt without selling its Bitcoin holdings.
Metaplanet announced a 52 billion yen ($329 million) convertible bond offering , carrying a 0% interest rate and maturing in 2031. The Japanese company will use the proceeds to reduce its Bitcoin-backed loans and finance share buybacks.
According to the announcement , the company will allocate approximately 23.6 billion yen ($149 million) to repay BTC-backed debt and another 28.3 billion yen ($179 million) to repurchase its own shares.
The transaction will allow Metaplanet to reduce its reliance on cryptocurrency-backed loans without having to sell any of its Bitcoin holdings .
Metaplanet Aims to Reduce Debt and Repurchase Shares
The offering is part of a financial restructuring that includes a share buyback program of up to 60 billion yen ($380 million) .
The bonds will pay no interest over their five-year term and can be converted into shares under the terms established in the offering.
Metaplanet currently holds 44,000 BTC in its treasury , valued at approximately $3.6 billion , according to BitcoinTreasuries . This makes it the second-largest publicly traded company by Bitcoin holdings.
The company also recently introduced a new capital allocation framework that would allow it to dedicate up to 15% of its total assets to strategic investments intended to finance future BTC purchases and dividend payments.
Shares Have Fallen More Than 52% Over the Past Year
Metaplanet shares closed Tuesday’s trading session in Tokyo down 1.5% . Over the past 12 months, the company’s stock has declined 52.6% , according to Yahoo Finance.
The company also faced criticism from shareholders after expanding its executive stock option program nearly sevenfold .
Metaplanet subsequently announced a 41% reduction in the number of potential shares associated with the program, from 319.46 million to 188.19 million.
The new debt offering will finance the planned share buybacks and repay part of its Bitcoin-backed loans while the company retains its 44,000 BTC.
