Metaplanet to bolster BTC treasury strategy with share buybacks

Japanese listed company Metaplanet, which has been accumulating Bitcoin, has announced a revision to its capital allocation policy. The company stated that the recent decline in BTC prices, which brought its modified Net Asset Value (mNAV) to around 1x, necessitated greater flexibility in its capital policy. Under the revised plan, Metaplanet will seek to maximize its BTC yield by utilizing perpetual preferred stock. It will also implement a strategy of buying back its own shares to increase BTC holdings per share whenever its mNAV drops below 1x. Additionally, the company plans to use Bitcoin-backed credit lines as a supplementary funding source but intends to manage its borrowing conservatively. Metaplanet CEO Simon Gerovich said the company recently secured approximately 40.8 billion yen ($258 million) through a fundraising round with global institutional investors. He noted that the new share issuance was conducted at a price reflecting a premium of about 2% and that the structure allows for a potential fundraising total of up to 85.3 billion yen ($540 million). The secured funds will be used to expand its Bitcoin treasury strategy, Gerovich added.