Metaplanet to raise ¥52 billion in bonds for debt and buybacks, not Bitcoin

Early Tuesday, Metaplanet (TYO: 3350) announced plans to use the ¥52 billion ($340 million) it raises from its new zero-coupon convertible bonds to pay down Bitcoin-backed loans and buy back its own shares.

The October 13 filing with the Tokyo Stock Exchange confirmed that the funds from the zero-coupon convertible bonds maturing in 2031 issued by the firm with the world’s second-largest corporate Bitcoin treasury will not go to adding to its Bitcoin pile.

Is Metaplanet raising funds to buy Bitcoin?

Metaplanet’s filing with the Tokyo Stock Exchange plainly stated that the firm will not direct funds from its latest financing to adding Bitcoins to the 44,000 BTC it held as of the end of September.

That decision by the Gerovich-led company comes down to leverage. Metaplanet wants to keep borrowing against its Bitcoin below a threshold set at roughly 10% of the net asset value of those holdings per a capital policy revised on October 5.

However, as of September 30, that ratio had shot past the 10% level to about 17.7%, and further drops in BTC price could push the ratio deeper into unwanted territory.

The company is now tapping convertible bonds (debt that investors can later swap for ordinary shares) to bring the ratio back into the black.

What is Metaplanet raising money for?

Metaplanet plans to use ¥23.6 billion of the ¥51.9 billion it is planning to raise to repay loans in November 2026.

As of September 30, Metaplanet had drawn about $650 million against an $800 million Bitcoin-collateralized credit facility. The purchase of Siiibo Securities, renamed Metaplanet Securities, added to that number.

Metaplanet also plans to use up to ¥28.3 billion of the raised funds to buy back its own shares between October and December 2026.

The filing details a planned off-market repurchase of up to ¥25.3 billion through the Tokyo exchange’s ToSTNeT-3 system, with the transaction scheduled for October 14. Metaplanet estimates buying back as much as 97.94 million shares, close to 7.1% of its issued ordinary stock if it deploys the entire ¥25.3 billion allocation.

Separately, the board closed out the buyback program that started in October 2025 and approved a new repurchase of up to ¥60 billion.

Bond terms and the conversion window

Merrill Lynch International served as bookrunner and lead manager for Metaplanet’s first euroyen-denominated convertible offering, marketing it to investors in Europe and Asia. Investors in the United States were excluded from the sale.

Each bond has a face value of ¥10 million and is accompanied by 5,200 stock acquisition rights.

The bonds close on October 29, 2026, and mature on October 29, 2031. Holders can convert into shares from November 12, 2026, through October 15, 2031. Metaplanet may redeem the bonds early starting October 29, 2029, if its share price hits at least 160% of the conversion price on 20 trading days within a 30-day stretch. Bondholders get their own exit on that same date, with the right to demand repayment at face value.

Metaplanet added a net 1,000 BTC in the third quarter by buying 11,000 BTC after initially selling 10,000 BTC. It described that roundtrip as a way to “demonstrate liquidity” to rating agencies and bond buyers.

CEO Simon Gerovich had denied any Bitcoin sales in August, as Cryptopolitan reported, before the October 5 disclosure confirmed the trades. The company is now pursuing a credit rating of its own, and the new bond structure fits that push toward cheaper, longer-term funding.