Metaplanet Announces $329M Bond Sale, $380M Buyback After 90% Stock Drop

Metaplanet Launches Bond Offering, Share Buyback

Metaplanet, a Japanese company known for its Bitcoin-backed treasury strategy, announced plans to issue ¥52 billion ($329 million) in unsecured, zero-coupon Euro-yen convertible bonds due in 2031. The company intends to use the proceeds to refinance existing Bitcoin-backed loans and fund a share buyback program worth approximately $380 million.

The announcement comes after Metaplanet’s stock price has plummeted nearly 90% from its peak. The convertible bond offering is expected to close on October 29. This move signals an attempt to stabilize the company’s financial position and restore investor confidence.

Metaplanet has positioned itself as a Bitcoin treasury, acquiring BTC with borrowed funds. The strategy aimed to benefit from potential Bitcoin price appreciation while leveraging the difference between borrowing rates and potential returns. However, the recent downturn in the broader crypto market has significantly impacted the company’s stock performance.

The share buyback program is designed to reduce the number of outstanding shares, potentially increasing earnings per share and bolstering the stock price. The success of this strategy will depend heavily on future Bitcoin price movements and the overall market sentiment.

Source: CryptoSlate