Metaplanet plans to issue 52 billion Japanese yen in zero-coupon convertible bonds, with part of the funds used to repay credit loans and unlock pledged Bitcoin.
49 minutes ago
Metaplanet CEO Simon Gerovich announced in a post that the company will issue zero-coupon yen-denominated convertible bonds totaling 52 billion yen, maturing in 2031, while simultaneously advancing its share repurchase program. Of the proceeds from the bond issuance, up to 28.3 billion yen will be allocated to share buybacks: up to 25.3 billion yen will be used for over-the-counter (OTC) block trades covering up to 96,934,800 shares, or roughly 7.1% of the company’s outstanding issued shares; the remaining amount will be acquired via open market purchases. Separately, the company will use approximately 23.6 billion yen to partially repay its credit line, unlocking the Bitcoin currently held as collateral for the facility. Gerovich explained that Metaplanet’s current share price trades below the value of its Bitcoin holdings, so the repurchase is designed to create shareholder value by leveraging this discount. The convertible bonds’ initial conversion price is set above both the bond’s issuance price and 1.0 times its market net asset value (mNAV). Though the issuance will increase the company’s total debt, Metaplanet intends to replace some secured, interest-bearing loans with unsecured debt that carries no periodic interest payments. This move is expected to lower interest costs, extend debt tenors, and boost financial flexibility for future Bitcoin acquisitions.
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