The Tokyo-listed Bitcoin treasury firm Metaplanet Inc. has announced a ¥75 billion (approximately $500 million) share repurchase initiative, supported by a Bitcoin-collateralized credit facility, after its market-based net asset value (mNAV) fell below 1.
In a Tuesday announcement, the firm stated that this strategy aims to enhance Bitcoin (BTC) yield per share and restore market confidence, as its stock currently trades below the value of its Bitcoin assets.
The board-approved buyback program permits the repurchase of up to 150 million common shares, equating to 13.13% of the total issued shares. The repurchase period will span from October 29, 2025, to October 28, 2026, executed on the Tokyo Stock Exchange under a discretionary trading agreement.
To facilitate this initiative, Metaplanet indicated it has secured a Bitcoin-backed credit line with a borrowing limit of approximately $500 million, allowing for flexible financing for share buybacks or further Bitcoin acquisitions. This facility may also act as interim financing for a prospective preferred share issue.
Related: Metaplanet Becomes the Fourth Largest Corporate Bitcoin Holder
Metaplanet’s mNAV Drops to 0.88
Metaplanet’s mNAV, the ratio of the company’s value to its Bitcoin holdings, fell to as low as 0.88 last week before recovering, according to official data. The current metric is at 1.03.
The company has also ceased new Bitcoin purchases amid the decline in mNAV. Currently, it holds 30,823 BTC (worth $3.5 billion) on its balance sheet, following its latest acquisition of 5,268 BTC on September 30. Nevertheless, Metaplanet expressed its commitment to acquiring 210,000 BTC by 2027.
On Monday, ETHZilla also announced a $40 million share buyback as its stock remains significantly undervalued compared to NAV. The firm stated that it has already repurchased around 600,000 shares, valued at $12 million, since October 24 as part of its $250 million buyback program.
A recent report by 10x Research disclosed that Bitcoin treasury firms have experienced a plummet in their NAVs, erasing billions in paper wealth.
Analysts noted that the surge in Bitcoin treasury companies, which issued shares at multiples of their actual BTC value, has “fully round-tripped,” resulting in significant losses for retail investors while firms retained actual Bitcoin.
Related: Bitcoin Treasuries Can Earn More Bitcoin, says Willem Schroé
S&P Assigns “B-” Rating to Michael Saylor’s Strategy
In related news, S&P Global Ratings has assigned a “B-” credit rating to Michael Saylor’s Strategy, categorizing it as speculative and non-investment grade, though with a stable outlook.
The agency highlighted the firm’s heavy reliance on Bitcoin, limited business diversification, poor capitalization, and low US dollar liquidity as key weaknesses.
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