Metaplanet Launches $500 Million Share Buyback to Bolster Shareholder Value and Market Stability

Metaplanet, a Tokyo-listed Bitcoin (BTC) asset management firm, has announced a pivotal share buyback initiative valued at 75 billion yen (around $500 million). By leveraging a Bitcoin-backed credit line, the company aims to enhance shareholder value, rebuild market confidence, and drive higher per-share Bitcoin returns.

The buyback program comes amid concerns about the firm's market-based net asset value (mNAV), which recently fell below parity at 0.88. This metric, which compares the company’s stock price with its Bitcoin holdings, indicates that Metaplanet shares are undervalued against its crypto asset base. A recent bounce in the mNAV to 1.03, while promising, has not fully erased concerns over valuation discrepancies.

Metaplanet noted in its October 28 announcement, “By utilizing our Bitcoin-backed credit facility, we aim to stabilize share prices, restore shareholder trust, and maximize Bitcoin returns per share. This initiative is fundamental to rebuilding market confidence.”

Authorized Buyback Program Overview

The buyback initiative, approved by Metaplanet’s board of directors, authorizes acquiring up to 150 million shares—roughly 13.13% of the firm’s outstanding shares. Purchases will occur via discretionary trading on the Tokyo Stock Exchange, spanning the timeline from October 29, 2025, through October 28, 2026.

Funding for the program comes from a secured $500 million Bitcoin-backed credit line. Beyond stock buybacks, this facility may also be used to strategically acquire additional Bitcoin assets based on favorable market conditions. Additionally, it could serve as temporary bridge financing for potential preferred share issuances in the future, adding flexibility to the firm’s financial strategy.

mNAV Recovery and Bitcoin Acquisition Halt

Following a concerning drop in mNAV to 0.88 last week, Metaplanet now reports a slight recovery to 1.03. However, in light of ongoing fluctuations, the company has temporarily paused new Bitcoin purchases. Despite this pause, Metaplanet remains committed to its medium-term goal of securing a total of 210,000 BTC by 2027.

Currently, the company holds 38,023 BTC, valued at approximately $3.5 billion, following its latest Bitcoin acquisition of 5,268 BTC on September 30. While this robust holding signals confidence in Metaplanet’s strategy, temporary pauses allow the firm to allocate resources toward shareholder-focused initiatives during periods of market volatility.

Navigating Industry-Wide Challenges

The valuation underperformance faced by Metaplanet reflects broader challenges for cryptocurrency-backed asset management firms. Industry players have increasingly struggled with deep discounts to their net asset value (NAV), prompting buyback measures to address shareholder concerns.

ETHZilla, another crypto-backed asset firm, launched a $40 million buyback program to combat undervaluation. As of October 24, ETHZilla had repurchased $12 million worth of shares, totaling 600,000 shares, reflecting efforts similar to Metaplanet’s initiative. These buybacks highlight a growing trend within the sector to align stock valuations more closely with underlying crypto holdings.

Widespread NAV Declines Among Crypto Asset Managers

According to a recent report by 10x Research, NAV declines have become an industry-wide issue for Bitcoin asset managers. The report points to multi-billion-dollar unrealized losses driven by prior equity issuances conducted at inflated valuation multiples compared to actual BTC holdings. Subsequent market corrections have exposed discrepancies, eroding share price premiums and leaving firms grappling to minimize damage.

Such challenges reflect structural issues in crypto-backed financial entities, making it increasingly important for firms like Metaplanet to pursue adaptive strategies to reassure investors and stabilize valuations.

MicroStrategy’s Financial Risks Highlight Broader Concerns

The volatility inherent in cryptocurrency-centric strategies is underscored by S&P Global Ratings' "B-" speculative-grade rating for MicroStrategy, a leading firm headed by Bitcoin advocate Michael Saylor. The rating reflects the firm’s high-risk financial profile, heavily reliant on Bitcoin assets, along with limited diversification, constrained liquidity in U.S. dollars, and low capital reserves.

While S&P’s outlook for MicroStrategy remains stable, its cautionary tone mirrors widespread apprehension about firms overly focused on crypto-driven financial strategies. As these companies navigate unpredictable markets, balancing shareholder expectations with risk management becomes a vital, ongoing challenge.

The Road Ahead for Crypto Asset Managers

Metaplanet’s $500 million buyback initiative serves as both a competitive response and a strategic effort to align shareholder priorities with market dynamics. By repurchasing shares at a perceived discount to intrinsic value and funding initiatives through Bitcoin-backed credit lines, the firm aims to recover investor confidence and stabilize share prices.

At the same time, the broader landscape for cryptocurrency-backed firms remains volatile, with NAV declines and valuation disparities creating pressing hurdles. As Metaplanet and its industry peers attempt to bridge shareholder expectations with the realities of the crypto market, strategic adaptability and robust financial planning will prove indispensable.