Crypto Firm Bets Half a Billion on Bitcoin to Win Back Investors

Metaplanet Inc., one of Japan’s most prominent Bitcoin-holding companies, is turning to Bitcoin-backed borrowing to fund an ambitious $500 million share buyback after its stock value slipped below the worth of its Bitcoin reserves.

The Tokyo-listed firm announced that its board approved the repurchase of up to 150 million shares – roughly 13% of its total – to be carried out through the Tokyo Stock Exchange over the next two years. The move follows a sharp dip in Metaplanet’s market-based net asset value (mNAV), which recently fell to 0.88 before recovering slightly.

To finance the buyback, Metaplanet secured a Bitcoin-collateralized credit facility worth half a billion dollars. The credit line will give the firm flexibility to either repurchase shares or expand its Bitcoin holdings, and could later serve as a bridge toward issuing preferred stock.

Despite temporarily pausing new Bitcoin purchases during the mNAV decline, Metaplanet still holds over 30,000 BTC – valued at about $3.5 billion – and remains committed to its long-term target of 210,000 BTC by 2027.

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The company’s move comes amid growing volatility among Bitcoin treasury firms. A report by 10x Research noted that several such companies have seen their valuations collapse after initially trading well above their actual Bitcoin holdings, leaving many investors in the red.

Elsewhere, ETHZilla also announced a $40 million buyback as its stock trades at a steep discount to its net asset value, while S&P Global Ratings issued a speculative “B-” rating to Michael Saylor’s Strategy, citing high Bitcoin exposure and limited diversification.