Metaplanet Launches $500M Buyback to Support Plunging Shares
Japanese firm Metaplanet has announced a massive share buyback program worth up to $500 million, aiming to stabilize its declining stock price as market volatility erodes investor confidence.
13% of outstanding shares to be repurchased
The company plans to repurchase up to **150 million common shares**, representing roughly **13% of its total outstanding shares** excluding treasury stock. The buyback will take place on the **Tokyo Stock Exchange** and is expected to begin on **October 29, 2025**.
The initiative reflects the company’s commitment to restoring market value after its shares have underperformed in recent months. The firm has been struggling to maintain parity between its **market capitalization** and **net asset value (mNAV)** — a key performance indicator for companies holding substantial cryptocurrency reserves.
Crypto-linked volatility shakes investor confidence
Metaplanet — often referred to as “Japan’s MicroStrategy” for its substantial Bitcoin holdings — has faced increasing market pressure as digital asset prices fluctuate sharply. The company’s financial performance is heavily correlated with the valuation of its cryptocurrency reserves, which can amplify both gains and losses.
In response, the board approved the creation of a **credit line with a borrowing limit of $500 million**, valid for one year starting from October 29. The credit facility is designed to fund the buyback program and maintain liquidity during turbulent market conditions.
A defensive move to protect shareholder value
Analysts interpret the move as a **strategic defense** aimed at preventing further erosion of shareholder trust. By reducing the number of shares in circulation, Metaplanet seeks to boost earnings per share and restore confidence in its valuation model, which has come under scrutiny amid Japan’s broader economic slowdown.
The company’s leadership insists that the decision aligns with its long-term vision of combining **blockchain-backed asset management** with traditional corporate stability.
Market reaction and broader implications
Investors greeted the announcement with cautious optimism. Early trading on the Tokyo Stock Exchange showed signs of recovery in Metaplanet’s share price following the news, though analysts warned that sustained improvement will depend on global crypto market trends and Japan’s monetary environment.
If successful, the buyback could serve as a precedent for other crypto-exposed firms seeking to mitigate volatility through traditional financial mechanisms. It also signals a growing willingness among Japanese corporations to use **hybrid financial strategies** blending digital assets with conventional market tools.
Looking ahead
Metaplanet’s management stated that the company remains committed to strengthening its balance sheet and enhancing long-term shareholder value. While the $500 million buyback represents a bold step, much will depend on whether the firm can maintain liquidity and investor confidence in an increasingly unpredictable crypto-linked economy.
Editorial Team — CoinBotLab