Metaplanet Plans $333 Million Bond to Repay Debt and Buy Back Shares

Metaplanet plans to issue $333 million in zero-coupon euro-yen convertible bonds due in 2031, directing the proceeds mainly toward debt repayment and share repurchases rather than additional Bitcoin (BTC) purchases.

The offering will be the Tokyo-listed company’s first issuance of this type of bond. The securities will be issued at 102.5% of face value and listed on the Singapore Exchange. Net proceeds are expected to total about $333 million.

Metaplanet plans to use about $151 million to repay credit facilities secured by Bitcoin. It may allocate up to $181 million to repurchase its shares. The company has stated that the bond proceeds will not fund Bitcoin purchases.

As of Sept. 30, Metaplanet held 44,000 Bitcoin. Its credit-facility balance was about $650 million, equal to roughly 17.7% of its Bitcoin net asset value. That was above the company’s stated 10% target ceiling.

Metaplanet also plans to repurchase up to $162 million of its shares through ToSTNeT-3 on Oct. 14. Separately, it established a share-repurchase program with a total limit of $385 million.

The company plans to keep 85% to 90% of its assets allocated to Bitcoin while reserving 10% to 15% for acquisitions, income-generating assets and asset management under its capital-allocation strategy.