Metaplanet raises $329 million in convertible bonds to refinance debt and fund $380 million buyback

• Metaplanet announced $329 million in zero-coupon convertible bonds maturing in 2031, expected to close October 29.
• The company plans a $380 million share buyback program following a 90% decline from its stock peak.
• The capital raise will refinance Bitcoin-backed loans, a key exposure for the treasury strategy backing the stock.

• $329M Convertible bond issuance to refinance debt and fund buybacks
• 90% Stock price decline from peak to current trading levels
• $380M Planned share repurchase program from capital raised

Metaplanet, the Japanese Bitcoin acquisition company that went public via merger in 2023, announced plans to raise ¥52 billion ($329 million) through unsecured zero-coupon convertible bonds maturing in 2031, according to reporting by CryptoSlate. The issuance, expected to close October 29 (Thursday), will service Bitcoin-backed loans underpinning the company’s treasury strategy and fund a $380 million share repurchase program. The dual use of capital, debt refinancing and equity buyback, reflects a cash crunch at a firm whose business model depends entirely on holding and borrowing against Bitcoin positions.

Stock decline forces Metaplanet into refinancing after 90% crash

Metaplanet’s equity has collapsed from its peak amid broader weakness in crypto-linked Japanese equities and rising rates that increase the cost of Bitcoin-backed lending.

The 90% decline from peak means the firm is now capitalized at a fraction of its earlier valuation, shrinking its ability to issue equity at favorable conversion terms or raise capital without immediate dilution to existing shareholders.

Convertible bonds allow Metaplanet to defer equity issuance while securing cash today, a tactic common in distressed situations where the company expects the stock to recover and convert at lower dilution.

The zero-coupon structure means holders receive no annual interest payments, reducing near-term cash drain.

Buyback signals confidence but refinancing dominates capital use

The announced $380 million buyback, larger than the $329 million raised, suggests management expects share appreciation and wishes to counter the perception of distress. However, the primary use of proceeds is refinancing Bitcoin-backed loans, meaning most capital addresses debt obligations rather than deploying new Bitcoin purchases.

This distinction matters to institutional equity investors, who face a refinancing-heavy capital structure rather than aggressive balance-sheet expansion.

The gap between issuance size and buyback size implies Metaplanet is using other resources to execute the full repurchase.

Institutional investors in Metaplanet face two conflicting signals. On one hand, a buyback at depressed valuations should theoretically benefit remaining shareholders. On the other, the firm’s reliance on convertible debt and refinancing indicates the Bitcoin-backed lending market remains tight and that operational cash flow does not cover debt service.

If Bitcoin prices weaken further or lending spreads widen, Metaplanet could face additional refinancing pressure before the 2031 maturity date.

The CCS read. We see a Treasury company backed into a corner by leverage, not one betting on appreciation. The buyback is the story management wants to tell; the refinancing is the story the market should watch. If convertible bond holders exercise conversion rather than hold to maturity, dilution will exceed the damage a direct equity raise would have caused today.

Watch for Metaplanet’s October 29 (Thursday) bond closing confirmation and the conversion premium priced into the bonds, a tight premium signals the market doubts the stock will recover above current levels before 2031 maturity, which would trigger forced conversion and accelerate shareholder dilution.