Metaplanet plans to issue ¥52 billion zero-interest convertible bonds, with part of the proceeds used to repay credit and release pledged Bitcoin.

BlockBeats news, October 14: Metaplanet CEO Simon Gerovich posted that the company will issue a total of ¥52 billion in zero-interest yen-denominated convertible bonds due in 2031, while simultaneously advancing a share buyback plan.

Of the proceeds from this issuance, up to ¥28.3 billion will be used to repurchase company shares, of which up to ¥25.3 billion will be executed through off-market block trades, involving up to 96,934,800 shares, approximately 7.1% of issued shares; the remainder will be completed through market purchases.

In addition, the company will use approximately ¥23.6 billion to partially repay its credit facility, in order to release the Bitcoin currently used as collateral. Gerovich stated that Metaplanet's stock price is currently below the value of its Bitcoin holdings, and this buyback aims to use the discount to create value for shareholders; the initial conversion price of the convertible bonds is higher than the stock price at issuance and 1.0x mNAV.

Although this issuance will increase the company's total debt, the company hopes to replace some secured interest-bearing borrowings with unsecured debt that has no regular interest expenses, thereby reducing interest costs, extending debt maturity, and enhancing financial flexibility for subsequent Bitcoin accumulation.