Metaplanet Employs Aggressive Buyback to Counter Undervaluation

Metaplanet has initiated a substantial strategic shift in response to a critical valuation discrepancy. The company's market capitalization recently fell below the value of its Bitcoin holdings, prompting decisive corporate action centered on an extensive share repurchase initiative.

The primary catalyst for this move emerged from Metaplanet's market-to-net-asset-value (mNAV) ratio declining to 0.88x. This key metric, which compares the company's market value against its Bitcoin reserves, dropped below the critical 1.0 threshold—indicating investors value the entire business at less than its cryptocurrency assets alone. This significant discount compelled management to intervene directly.

Comprehensive Buyback Program Details

Metaplanet's board has authorized the repurchase of up to 150 million of its own shares, representing approximately 13.13% of total outstanding equity. The program forms the cornerstone of a broader strategy to address the perceived market undervaluation.

Funding for this ambitious initiative comes through a $500 million credit facility, which the company has secured using its Bitcoin reserves as collateral. The total operation carries an estimated value of 75 billion yen.

Should investors sell immediately? Or is it worth buying Metaplanet?

Market Response and Implementation Strategy

Initial market reaction to the announcement produced a sharp but temporary uplift. At the week's opening, Metaplanet shares surged roughly 10% before retreating from these gains. By Wednesday's close, the stock settled at 475 yen, reflecting ongoing uncertainty about the stabilization effort.

The company's approach rests on multiple strategic pillars:

• Implementation of share repurchases covering up to 150 million shares
• Total program value equivalent to 75 billion yen ($500 million)
• Flexible financing through Bitcoin-collateralized credit lines
• Primary objective of correcting undervaluation relative to Bitcoin holdings

Through this repurchase strategy, management aims to directly influence share performance by reducing the number of outstanding shares, thereby increasing the proportional Bitcoin exposure per remaining unit of equity. The market continues to process this substantial corporate maneuver, with future price direction hinging on successful execution of the buyback program.