Metaplanet to issue $329M convertible bonds to pay debt, fund share buybacks
Metaplanet plans to issue zero-interest bonds with a five-year maturity to improve its debt structure and cut its reliance on Bitcoin-collateralized loans without selling holdings.
Metaplanet is set to issue $329 million in zero-interest, five-year convertible bonds to improve its debt structure and decrease reliance on Bitcoin-collateralized loans, according to a Tuesday announcement. The company will utilize approximately 23.6 million yen of the net proceeds to repay existing Bitcoin-collateralized loans and allocate around 28.3 million yen for share buybacks.
These bonds, due in 2031, are part of Metaplanet's new share repurchasing program, which aims to buy back up to 60 billion yen in total shares. The company, ranking as the second-largest Bitcoin treasury firm with a 44,000 BTC holding worth $3.6 billion, saw its share price drop 1.5% in Tokyo trading on Tuesday, contributing to a 52.6% 12-month decline.
Metaplanet recently unveiled a revised capital allocation framework that allocates up to 15% of its assets to strategic investments, funding Bitcoin accumulation and dividend payments. Management faced shareholder criticism in September for expanding the executive stock option pool almost sevenfold, which was later reduced by 41% to 188.19 million shares.
Earlier this year, Metaplanet announced the purchase of an additional 2,823 BTC, surpassing its 43,000 BTC holdings.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
