Metaplanet to issue $329M convertible bonds to pay debt, fund share buybacks

Metaplanet will issue 52 billion yen ($329 million) in zero-coupon, euro-yen convertible bonds due in 2031.Japanese investment and Bitcoin treasury company plans to use about 23.6 billion yen ($149 million) of the net proceeds to repay Bitcoin-collateralized loans and about 28.3 billion yen ($179 million) for share buybacks, according to a Tuesday announcement.The buybacks are part of Metaplanet’s new share repurchasing program, which targets up to 60 billion yen ($380 million) in total buybacks.The proceeds seek to improve the treasury company’s debt structure by reducing its reliance on Bitcoin-collateralized loans without selling any Bitcoin (BTC) holdings. Metaplanet ranks as the second-largest Bitcoin treasury firm, with 44,000 BTC in total holdings, worth $3.6 billion, according to BitcoinTreasuries.Metaplanet’s share price closed 1.5% lower in Tokyo on Tuesday, adding to its 52.6% 12-month slide, according to Yahoo Finance.Earlier this month, Metaplanet revealed a revised capital allocation framework proposing to allocate up to 15% of total assets to strategic investments to fund its Bitcoin accumulation and dividend payments.In September, management drew shareholder critici...