Key Insights
- Debt restructuring is a more immediate priority than buying bitcoins. The proceeds will not go towards the company’s reserves as it plans to use them to pay back and repurchase shares.
- Financial issues remain with the 17.7% borrowing ratio. Metaplanet targets that ratio to be 10% or less per the company’s internal guideline.
- The buybacks and convertible bonds have an opposing impact. The repurchases could cause Bitcoin exposure per share to rise, and future conversions may lead to an increase in the number of shares outstanding.
Metaplanet will issue ¥52 billion in zero-coupon bonds on October 29 2026 to restructure its debt and repurchase shares. The Tokyo-listed Bitcoin treasury company expects ¥51.9 billion, in net proceeds as borrowing costs and Bitcoin collateral risks pressure its financial strategy.
Metaplanet shifts toward long-term financing
Metaplanet announced the proposed bond issuance on October 13 through a filing with the Tokyo Stock Exchange. The five-year securities will mature on October 29, 2031, without periodic interest payments. Merrill Lynch International will lead the overseas offering, which targets European and Asian investors while excluding the United States.
*Notice Regarding Issuance of Zero Coupon Euro-Yen Denominated Convertible Bonds with Stock Acquisition Rights due 2031* pic.twitter.com/Vwn8QTXeWA
— Metaplanet Inc. (@Metaplanet) October 13, 2026
The company will allocate ¥23.6 billion toward repaying existing borrowings in November. It will direct up to ¥28.3 billion toward share repurchases between October and December 2026. Consequently, the transaction prioritizes balance-sheet adjustments rather than immediate Bitcoin accumulation.
The unsecured bonds will replace part of Metaplanet’s interest-bearing, Bitcoin-collateralized debt. This could decrease interest rates on financing and free up Bitcoin that are collateralized on current loans. The issuing, however, adds to liabilities and any subsequent repayments or other action will reduce them.
Investors can convert the bonds into ordinary shares under specified conditions. The conversion period runs from November 12, 2026, through October 15, 2031. The final conversion price will follow the terms outlined in the company’s securities disclosure.
Bitcoin-backed borrowing exceeds internal limits
Metaplanet kept 44,000 BTC by the end of September 2026 showing how important Bitcoin is to Metaplanet’s treasury plan.. Metaplanet’s debt has grown together with Metaplanet’s Bitcoin holdings.
On September 30 about $649.5 million was still owed under a credit line that allows, up to $800 million. Metaplanet’s borrowing‑to‑Bitcoin net asset value ratio hit 17.7 percent than Metaplanet’s own rule of 10 percent or less.
That gap puts pressure on Metaplanet when Bitcoin prices fall. If Bitcoin values drop the worth of Metaplanet’s reserves will shrink, while the share of debt will grow.The bond proceeds offer a route toward lower leverage without selling additional Bitcoin. Moreover, unsecured financing could reduce the amount of cryptocurrency tied to collateral requirements.
Key figures from the announcement include the following.
- Bond issuance—¥52 billion in principal.
- Expected net proceeds—Approximately ¥51.9 billion.
- Debt repayment allocation—¥23.6 billion.
- Share repurchase allocation—Up to ¥28.3 billion.
- Bitcoin reserves—44,000 BTC at September-end.
- Borrowing ratio—17.7% of Bitcoin net asset value.
Share buybacks support capital allocation strategy
Metaplanet also plans to repurchase shares using part of the bond proceeds. The allocation includes an off-market transaction worth up to ¥25.3 billion through the Tokyo Stock Exchange’s ToSTNeT-3 system.
The company estimates that a fully executed purchase could cover approximately 97.94 million shares. That amount represents roughly 7.1% of its issued ordinary shares. Separately, Metaplanet approved a new share repurchase authorization capped at ¥60 billion. The company also ended its previous buyback program established in October 2025.
Management has linked share repurchases to improving Bitcoin exposure per remaining share. When the market values the company below its underlying Bitcoin net asset value, buybacks may increase each remaining share’s proportional exposure.
But, results rely on the execution prices, readily available money and the market valuation. Convertible bonds also introduce potential dilution if investors exchange their holdings for ordinary shares.
Metaplanet has stated that the financing will not directly fund additional Bitcoin purchases. Any unused buyback allocation may instead support further repurchases or debt repayment.
Financial expansion faces leverage and dilution risks
The bond offering forms part of Metaplanet’s broader Project Nova strategy. The initiative aims to develop Bitcoin-related financial products, capital-raising services, and investment operations beyond treasury accumulation.
The company acquired Siiibo Securities for ¥2.1 billion in July and renamed it Metaplanet Securities. It has also pursued Bitcoin-related bond products and other financial services through its expanding operations.
Nevertheless, the new financing highlights the trade-offs facing companies that borrow against volatile digital assets. We have not got any fixed cash payments of interest on the bond, but it is still a bond and not risk-free or due-free, it is just a zero-coupon bond.
Factors that will influence the transactions’ impact.
- Leverage management—Servicing secured debt may bring borrowing nearer to Metaplanet’s own limits.
- Shareholder value—Buybacks can boost Bitcoin’s exposure per share, factoring in some of the benefits from conversion.
- Flexibility in finances—Unsecured financing can alleviate the pressure of having to place collateral, and it puts the firm at risk if the price of Bitcoin drops.
Conclusion
Metaplanet is issuing the bonds to combat borrowing risks and to contribute to the returns to shareholders. The approach would enhance the flexibility of financing without the need for immediate selling of bitcoins.
But the company still needs to deal with its long outstanding loans, the possibility of share dilution and the volatility of the cryptocurrencies. The ability to leverage closer to internal targets will be at the core of measuring the effectiveness of the financing.
