Metaplanet Shares Plummet Amid Bitcoin Strategy Scrutiny

Asia’s largest corporate holder of Bitcoin is facing intense pressure. Metaplanet, despite its substantial cryptocurrency reserves, is contending with a severe market correction. The firm recently disclosed fresh details regarding its share repurchase initiatives and option rights, leaving investors to wonder whether management can arrest the decline or if regulatory challenges pose further threats.

Regulatory Clouds Gather as Strategy Relies on Bitcoin

The company’s ambitious plan to accumulate 210,000 BTC by the end of 2027 now faces a potential regulatory hurdle. Reports indicate the Japan Exchange Group (JPX) is considering measures to limit the expansion of firms operating as “Crypto Treasuries,” driven by concerns over retail investor losses. This scrutiny comes as three other Japanese companies have already suspended their Bitcoin acquisition plans. For Metaplanet, maintaining regulatory goodwill is essential, as its entire strategy depends on continued access to capital markets.

A Share Buyback Funded by Bitcoin

In a direct effort to counter the falling share price, Metaplanet is advancing a share repurchase program initially approved in late October. The plan, valued at 75 billion yen (approximately $500 million), aims to retire up to 13.1% of its freely traded shares by October 2026. Notably, this defensive mechanism is financed through a credit line that is itself collateralized by the company’s own Bitcoin holdings.

The market’s reaction, however, has been brutal. Since peaking in June 2025, the stock has lost over 80% of its value, recently closing near 380 yen. This catastrophic downtrend has so far proven resistant to the company’s aggressive capital market interventions.

Financial Overhaul in Turbulent Times

To navigate this volatile environment, Metaplanet is aggressively restructuring its finances. Key moves include:

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

• Increased Debt: In November, the company drew an additional $130 million from its Bitcoin-backed credit facility, raising total debt to $230 million.
• New Preferred Shares: A new issuance of “MERCURY” preferred shares worth $150 million was announced. These shares carry a fixed dividend yield of 4.9%. The company’s strategy leverages Japan’s low-interest-rate environment as a structural advantage against U.S. competitors.
• Cleaning the Slate: Existing warrants are being canceled to simplify the capital structure ahead of these new issuances.

The decisive moment arrives on December 22nd, when an extraordinary general meeting will vote on the proposed MERCURY share issuance.

Core Business Transformed into Bitcoin Management

While the equity price collapses, the firm’s third-quarter 2025 results reveal a near-total pivot to digital assets. The operational business has fundamentally shifted:

• The corporate treasury holds 30,823 BTC, with a valuation between $2.7 and $2.8 billion.
• This makes Metaplanet the fourth-largest publicly traded Bitcoin holder globally.
• The company generated 2.3 billion yen in quarterly revenue solely from selling put options.
• Unrealized valuation gains for the first nine months of the year reached 20.6 billion yen.

This activity means over 95% of the company’s revenue now originates from managing its Bitcoin treasury.

Currently, the stock trades at a discount to its modified Net Asset Value (mNAV) of approximately 0.96. This market pricing values the entire company below the worth of its pure Bitcoin holdings—a stark indicator of investor skepticism surrounding its business model and future prospects.