Metaplanet Approves $500M Buyback to Narrow Its Bitcoin NAV Discount

Metaplanet, a company known for corporate Bitcoin accumulation, has approved a 75 billion yen (around $500 million) share buyback program over the next 12 months. This aggressive move directly targets the persistent discount between the company’s stock market valuation and the Net Asset Value (NAV) derived from its massive Bitcoin treasury, currently holding 30,823 BTC worth roughly $3.5 billion.

The company plans to repurchase up to 150 million shares, which equates to roughly 13% of its outstanding equity.

Metaplanet stated this action is a direct answer to its stock consistently trading for less than the value of its Bitcoin holdings. By buying back its own shares, the company intends to prop up the share price and bring its market value more in line with the Bitcoin it owns.

“Metaplanet has established a share repurchase program to enhance capital efficiency and maximize BTC Yield.”

Yesterday, the company raised roughly $1.4 billion (¥212.9 billion) through a new stock sale. The capital raised is designated for expanding its Bitcoin treasury and scaling its business operations focused on generating yield from its digital asset holdings.

Additionally, Metaplanet introduced a formal Capital Allocation Policy. It includes suspending common stock issuance when its market value drops below its net asset value, utilizing perpetual preferred shares to fund Bitcoin acquisitions, and initiating share repurchases when the common stock is deemed undervalued.

Public companies that maintain large Bitcoin reserves on their balance sheets often tend to experience stock price pressure during periods of crypto market skepticism. One method these organizations use to try and close this gap is by buying back their own shares, hoping to boost the stock price to better reflect the value of the Bitcoin they own.

Still, when corporations with big Bitcoin reserves intervene to support their stock price, it can indirectly support the price of Bitcoin itself. This effect is strongest if the company finds a way to pay for the buyback without having to sell any of its Bitcoin.