Metaplanet starts share buyback program to address mNAV decline

Japan's bitcoin treasury company Metaplanet disclosed plans to repurchase up to 150 million common shares, equivalent to 13% of its total issued shares excluding treasury stock.

The company said the repurchase program seeks to improve its capital efficiency and moreover its declining market-to-net-asset value (mNAV), which measures the value of the enterprise compared to the value of its bitcoin holdings.

"We recognize that due to rising market volatility and a decline in mNAV, our stock price currently does not adequately reflect our intrinsic economic value," Metaplanet said.

While its stock price is up 43.4% year-to-date, its current price of 499 Japanese yen is 73% lower than the peak closing price of 1,895 yen recorded on June 16, according to Yahoo Finance data. Metaplanet's mNAV reached a high of 10.33x on Feb. 13. It currently stands at 1.03x, recovering from a low point of 0.88x on Oct. 17.

"In light of this situation, the Company has established a share repurchase program as part of its disciplined capital allocation policy," the company wrote, noting that the program will be "particularly effective" when mNAV falls below 1.0x.

For the execution of the program, Metaplanet's board of directors has approved the establishment of a credit facility with a maximum borrowing capacity of $500 million, which will run for a year starting Oct. 29, 2025. The share repurchases will be made on the Tokyo Stock Exchange.

Since launching its bitcoin strategy in April 2024, the Tokyo-listed company has accumulated 30,823 BTC, valued at roughly $3.5 billion. It is currently the fourth-largest corporate bitcoin treasury globally and the largest in Asia.

In the Tuesday disclosure, the company reiterated its goal of reaching 210,000 BTC by the end of 2027.

Market to net asset value

Widely considered a crucial indicator of a digital asset treasury company's financial health, mNAV is the key indicator that reflects the company's ability to raise capital and accumulate more crypto without diluting shareholders. 

Metaplanet's recent decline in mNAV has raised concerns not only about the company's long-term viability but also about the fundamental business model of digital asset treasury firms more broadly.

Several other digital asset treasury companies have seen their mNAV dip below 1x, including major ETH treasury firms BitMine and SharpLink Gaming. 

During an interview at The Block's "The Crypto Beat" podcast, Consensys founder and SharpLink Chairman Joe Lubin said the mNAV ratio may fall temporarily in a digital asset treasury firm due to "cyclical" trends in broader markets.