Metaplanet unveils $380 million share buyback after stock crashes nearly 90% from peak

Metaplanet plans to raise $329 million to refinance Bitcoin-backed loans and fund share buybacks after its stock has declined 90% from its peak.On Oct. 13, the Japanese Bitcoin treasury company announced plans to issue ¥52 billion ($329 million) in unsecured, zero-coupon Euro-yen convertible bonds due in 2031.Expected to close on Oct. 29, the offering will target investors primarily in Europe and Asia, with the bonds slated for listing on the Singapore Exchange.The financing would let Metaplanet replace part of its interest-bearing, Bitcoin-collateralized debt with borrowing that requires no regular interest payments. The company expects the restructuring to free up pledged Bitcoin, reduce financing costs and improve financial flexibility without selling its cryptocurrency holdings.Bitcoin-backed debt pressures Metaplanet's capital strategyMetaplanet's refinancing comes as its reliance on Bitcoin-backed borrowing has exceeded the company's internal risk limits.As of Sept. 30, the company had approximately $649.5 million outstanding under an $800 million credit facility secured by its Bitcoin holdings.That represented 17.7% of the net asset value of its Bitcoin reserves, well above ...