Japanese Bitcoin company Metaplanet will issue zero-interest convertible bonds to reduce its secured loans and repurchase its own shares.
Metaplanet, a Japan-based Bitcoin treasury company, is preparing to issue 52 billion yen worth of zero-interest convertible bonds to restructure its balance sheet. These bonds, equivalent to approximately $329 million, are set to mature in 2031.
According to the company’s statement, of the approximately 51.9 billion yen net proceeds from the issuance, 23.6 billion yen will be used to repay Bitcoin-backed loan debts in November. A maximum of 28.3 billion yen will be allocated for the repurchase of Metaplanet shares.
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A conversion price of 339 yen per share was set for the bonds. Under the specified conditions, investors will be able to convert their bonds into company shares between November 12, 2026, and October 15, 2031. The bonds will not pay periodic interest, but the right to convert them into shares will give investors the opportunity to participate in the company’s future price performance.
Metaplanet plans to conduct its initial share buyback through the Tokyo Stock Exchange’s ToSTNeT-3 over-the-counter trading platform. The company estimates that the amount of shares it can repurchase could reach approximately 7.1% of its total holdings. The actual amount will depend on the number of shares offered for sale.
The buyback could increase the Bitcoin per share ratio by reducing the amount of shares in circulation. Conversely, the future conversion of bonds into shares will create new shares, potentially diluting the ownership stake of existing investors.
The company announced that it held 44,000 BTC as of the end of September. However, the new bond proceeds are not planned to be used to buy Bitcoin. Since the funds are allocated to debt repayment and share buybacks, this development should not be interpreted as Metaplanet making a new Bitcoin purchase worth 52 billion yen.
*This is not investment advice.
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