Metaplanet repurchased 96.45 million shares, costing 25.27 billion yen (160 million US dollars). This Japanese Bitcoin vault company adjusted its capital allocation strategy at a time when its stock price valuation is under pressure.

• Metaplanet repurchased 96.45 million shares from October 14th to 31st, amounting to 25.27 billion yen, which is approximately 7.1% of its issued shares.
• The company has used approximately 42.1% of its 60 billion yen authorized for repurchase.
• On November 2nd, the stock price of Metaplanet closed at 250 yen, with a gain of 2.46% during trading hours.
• CEO Simon Gerovich stated that in the future, capital allocation will take into account the number of Bitcoins held per share, stock price, and mNAV.
• As of September 30, Metaplanet holds 44,000 BTC, and continues to prioritize the advancement of its Bitcoin treasury strategy.

According to the documents submitted on November 2nd, Metaplanet purchased 96,447,400 ordinary shares between October 14th and October 31st. This purchase accounts for approximately 7.1% of its previously outstanding shares and was completed through transactions on the Tokyo Stock Exchange.

Meanwhile, according to Google Finance data, the stock price of Metaplanet closed at 250 yen on November 2nd, up 2.46% from the previous closing price of 244 yen.

While continuing to prioritize the number of Bitcoins held per share, the company is also repurchasing its own shares, and this metric is at the core of its treasury strategy.

Metaplanet Completes Share Repurchase of 25.27 Billion Yen

This repurchase occurred after the board of directors resolution on October 13th. The resolution authorized Metaplanet to repurchase up to 200 million shares for a maximum amount of 60 billion yen.

The implementation period of this plan extends until October 13, 2027, providing flexibility for management to make further purchases based on market conditions.

Metaplanet has currently utilized approximately 42.1% of the authorized expenditure limit. With the existing approvals, the company is still able to utilize an additional amount of about 34.73 billion yen.

Calculated based on the disclosed transaction amount, the average purchase price was approximately 262 yen per share.

This purchase includes regular market transactions, as well as over-the-counter repurchases conducted through the Tokyo Stock Exchange’s ToSTNeT-3 system.

According to Metaplanet, as of October 31, the number of common shares issued was 1,267,808,197, excluding treasury shares.

After completing these transactions, its holdings of treasury shares increased to 96,474,427 shares.

CEO Simon Gerovich confirmed these purchases and stated that when making decisions on how to allocate capital, management will continue to give priority to the number of Bitcoin holdings per share.

This executive pointed out that the company's stock price, the ratio of market net asset value to stock price, as well as the market conditions at that time, were all factors that guided future decisions.

mNAV remains the key focus for Metaplanet stock price monitoring

Metaplanet closed at 250 yen during the Tokyo trading session on Monday, up 6 yen from the previous closing price.

Google Finance shows that the high point of the session was 255 yen, the low point was 238 yen, and the trading volume was approximately 16.53 million shares.

The latest closing price is still below the level of 261 yen used by the company in its large-scale over-the-counter repurchase on October 14th.

Previously, crypto.news reported that Metaplanet repurchased 73,981,400 shares on October 14 for 19.31 billion yen.

A document dated November 2 shows that as of October 31, the cumulative amount of repurchases completed had reached 25.27 billion yen.

When explaining the repurchase policy, the Metaplanet management mentioned the net asset value of the market multiple times, which is referred to as mNAV.

This indicator compares the company's valuation with its net value of Bitcoin holdings, taking into account its financial structure as well.

When the stock price of a Bitcoin vault company is lower than the value of its underlying assets, repurchasing shares can increase the amount of Bitcoin corresponding to each remaining share.

Metaplanet previously considered repurchasing common shares in June when it reduced mNAV to 0.92.

The latest repurchase is in line with this policy, however, the document dated November 2 did not provide the exact mNAV rate during the repurchase period.

Metaplanet Adjusts financing arrangements to support Bitcoin strategy

In addition to stock repurchases, Metaplanet is also reorganizing its financing arrangements in order to reduce its dependence on Bitcoin-backed loans.

On October 13, the company announced plans to issue 52 billion yen of zero-coupon convertible bonds with a maturity date of October 2031.

In this financing plan, approximately 23.6 billion yen is to be used to repay existing loans, and up to 28.3 billion yen will be used for share repurchases.

Metaplanet indicates that this arrangement helps to manage debt while continuing to advance a capital allocation strategy centered on Bitcoin.

Its financing plan allows investors to convert bonds into common stock under certain conditions, and it may expand the share capital in the coming years.

The company set the initial conversion price at 339 yen per share, which is higher than the closing price on November 2nd.

Repurchasing existing shares will reduce the current share capital, while future bond conversions may partially offset this reduction.

The capital allocation policy of Metaplanet requires that approximately 85% to 90% of the assets be allocated to Bitcoin.

According to the previously disclosed borrowing policy, the company held 44,000 BTC at the end of September.

Its Bitcoin-backed loans account for approximately 17.7% of the net value of Bitcoin assets, which is higher than the company's preferred guideline of 10%.

The company plans to rely mainly on permanent equity financing in the future to purchase Bitcoin, while also using other financing tools within the established borrowing limits.

The repurchase document on the 2nd of Metaplanet11 did not announce any additional Bitcoin purchases.