Metaplanet, widely known as “Japan’s MicroStrategy”, has taken a major step forward in its long-term strategy by launching a 75 billion JPY share repurchase program.
This comes after the company faced a setback with a decline in its mNAV, and aims to make better use of capital and boost returns for shareholders.
Why Metaplanet Is Buying Back Its Own Shares
In its latest disclosure, Metaplanet noted that recent market volatility and a decline in its mNAV have led to its stock being undervalued.
The mNAV compares the company’s enterprise value to the market value of its Bitcoin holdings. When it falls below 1.0x, the company’s shares are seen as trading below their fair value based on BTC reserves.
To address this, Metaplanet launched a capital management plan designed to maximize BTC yield and improve capital efficiency.
Metaplanet’s stock is currently trading at 499 JPY, up 2.5% over the past day and roughly 18% over the last five days. Its mNAV has also recovered to 1.03 as of the time of writing.
The buyback program will cover up to 150 million common shares, representing about 13.13% of its total outstanding shares, excluding treasury shares. It will run from October 29, 2025, to October 28, 2026 and buybacks will be conducted through purchases on the Tokyo Stock Exchange under a discretionary trading agreement.
$500M Credit Line Announced
In order to give the company more flexibility in carrying out the repurchase program, the board has also approved a credit facility with a borrowing limit of up to USD 500 million (around JPY 76.4 billion).
This allows the company to secure funds using its Bitcoin holdings as collateral whenever needed. The funds raised could be used for additional Bitcoin purchases, investments in its Bitcoin Income business, or share buybacks.
The credit line also plays a major role in the Company’s financial strategy and is expected to serve as bridge financing ahead of its planned issuance of preference shares.
Metaplanet’s Capital Allocation Policy
Metaplanet has also created a new Capital Allocation Policy designed to maximize sustainable value creation. It will be guided by three fundamental principles.
Metaplanet plans to actively utilize preferred shares, to strengthen BTC yield and enhance long-term shareholder value. It will avoid new issuances when mNAV is below 1.0x, and pursue them only when mNAV exceeds 1.0x and valuations and strategic conditions clearly support long-term shareholder value.
And if mNAV falls below 1.0x, the Company will actively consider share buybacks to enhance BTC yield and shareholder value.
It also noted that the funding sources for share repurchases may include cash reserves, funds raised from preferred share issuances, credit facilities, or income generated by its Bitcoin-related business operations.
Since April 2025, the company has expanded its Bitcoin Treasury Strategy, now holding 30,823 BTC, making it the fourth-largest public Bitcoin holder globally and the largest in Asia.
The company is also committed to its long-term goal of acquiring 210,000 BTC by the end of 2027.
Despite what appears to have been a setback, Metaplanet continues to show strong conviction in Bitcoin’s long-term potential.
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