Metaplanet Shares Jump 10% on $500M Credit Facility and Stock Buyback Plan

Metaplanet Inc., a Tokyo-headquartered Bitcoin treasury firm, jumped by over 10% on Tuesday following the announcement of a major new...

Quick overview

  • Metaplanet Inc. saw a 10% stock increase after announcing a $500 million credit facility and a new capital allocation plan.
  • The company's strategy focuses on enhancing shareholder value and effectively utilizing their Bitcoin holdings amidst market volatility.
  • Metaplanet plans to buy back shares and has set a goal to reach 210,000 Bitcoins by 2027, solidifying its position in the market.
  • Currently, Metaplanet holds 30,823 Bitcoins valued at $3.5 billion, with a year-to-date yield of 496.4%.

Metaplanet Inc., a Tokyo-headquartered Bitcoin treasury firm, jumped by over 10% on Tuesday following the announcement of a major new capital allocation plan and the securing of a whopping $500 million credit facility. The goal behind this is to up the value of their shareholders, make better use of the money they have, and generally make a stronger case for being one of the biggest Bitcoin holding public companies in Asia.

The board of directors at Metaplanet Inc. gave the policy the green light way back on October 28th, with a focus on building long term value. They came up with this plan in response to a recent dip in Metaplanet’s market value below the value of their Bitcoin holdings (mNAV), following the cryptocurrency’s price tumbling to around $102,000. Despite the volatility, the company is still sticking to its guns with its BTC-centered investment strategy.

Some of the key elements of this new policy include:

  • Ensuring perpetual preferred shares are used effectively to boost returns on their Bitcoin investment.
  • Putting the brakes on any new equity being released when mNAV falls below 1.
  • Buying back shares to get the most out of their Bitcoin-based returns.

Metaplanet’s going to fund these initiatives using a combination of internal cash, proceeds from preferred shares, and the credit facility they secured.

Stock and Market Performance

Metaplanet’s stock closed at 519 JPY on Tuesday, up 10.2% from the start of the day after reaching an intraday high of 541 JPY. Trading volume shot up to 75 million shares—a huge jump from its average of 49 million—indicating that investors are once again becoming pretty optimistic about the company.

Over the past week or so, shares have risen by 25%. This is largely because Metaplanet has broken free of that trendline and is now screeching upwards, pushing its year-to-date return to 53%. All of this is happening at the same time as there’s a lot of optimism around corporations holding onto Bitcoin as part of their balance sheets. In fact, more and more institutional investors are recognizing digital assets as a way to diversify their portfolios.

As of now, Metaplanet is sitting on a cool 30,823 Bitcoins – valued at a whoppin’ $3.5 billion, no less – with a year-to-date yield of a pretty impressive 496.4%. Their mNAV is currently 1.05, and on top of that, they’re sitting on around $281 million in unrealized profits from their BTC investments.

$500 Million Credit Facility and Share Buyback Plan

Metaplanet’s board of directors also approved a share buyback program and a $500 million credit facility to give itself greater financial flexibility. Metaplanet’s CEO, Simon Gerovich, said the share buyback program, which aims to repurchase a total of 150 million shares by October 2026, is designed to “help the company make better use of its money and get the most out of its Bitcoin investments.”

The credit facility, which Metaplanet has secured, will give them the freedom to make new Bitcoin purchases, start up income-generating businesses, or buy back shares when the time is right.

Metaplanet has hit their 2025 target for Bitcoin purchases—and they’ve been slowing their purchases since then—but they’re still committed to reaching 210,000 Bitcoins by 2027. This would really cement their position as one of the biggest Bitcoin holding companies out there.

Right now, Bitcoin is trading at $113,850—a 1.5% drop over the last 24 hours—and has seen a 15% increase in trading volume over the last day, which should give you a pretty clear idea of how volatile the crypto market is right now.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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