Metaplanet News: $500M Share Buyback and Credit Deal Unveiled

Metaplanet News: $500M Buyback and Credit Facility Explained

In the latest Metaplanet news, the Japanese investment giant has made a bold move in its Biicoin investment strategy. The firm, often known as Asia’s MicroStrategy, has unveiled a $500 million share buyback program as part of its Bitcoin-focused reserve strategy.

To facilitate this plan, the firm has also established a $500 million credit facility, underscoring its commitment to improving efficiency and increasing its BTC Yield.

Metaplanet News: Buyback and Credit Deal

Asia’s largest Bitcoin holder has once again solidified its position in the crypto space, assuring its commitment to the crypto accumulation strategy. In a recent X post, Metaplanet announced the company’s plans for a new capital allocation and share repurchase plan.

This Metaplanet news focuses on the asset manager’s Bitcoin-focused capital strategy. Reportedly, the board has approved a large-scale share repurchase program worth ¥75.4 billion, approximately $500 million. The program enables the company to repurchase as many as 150 million shares, about 13.1% of its outstanding share class, over the next year to enhance resource efficiency and increase its "BTC Yield."

As part of the program, the asset manager has obtained a $500 million credit facility, which will be drawn down and secured against the company's Bitcoin reserves to fund the repurchase. This credit facility enables flexibility for the company to support its Bitcoin acquisition tactics and helps it reach its ambitious target of accumulating 210,000 BTC (1% of the total supply) by 2027.

Stock Price Soars

Driven by the latest Metaplanet news, the stock price surged by 2.25%, reaching 499 yen. Despite a 4.5% dip over the past month, the stock is up by a notable 16.5% over the past five days.

Why this Strategic Move?

Notably, the share repurchase program is designed to boost shareholder value when Metaplanet's market value falls below its net asset value. The strategy comes into play when the company's enterprise value is less than 1.0x the market value of its Bitcoin holdings. With similar funding, the investment giant has acquired 30,823 BTC worth around $3.5 billion, becoming the fourth-largest public BTC treasury globally and the largest in Asia.

The newly created Capital Allocation Policy establishes a framework for capital being allocated to finance and investments, as well as returning it to shareholders. Action taken under the Capital Allocation policy will come from a focus on maximizing the yield of Bitcoin and the company's long-term value in maintaining flexibility in allocating resources according to market conditions, and allowing for stability and growth.