Metaplanet announced the issuance of its first euro-yen-denominated convertible bonds worth ¥52 billion. The bonds will have a 5-year maturity and a 0% interest rate, and will be used to change a portion of its cryptocurrency bitcoin-collateralized borrowing to unsecured, interest-free long-term funding.
On the 13th, Metaplanet announced the issuance of its first euro-yen-denominated convertible bonds with stock acquisition rights. The expected issue amount is ¥52 billion, with a 5-year maturity and a 0% interest rate. The purpose is to change its interest-bearing, bitcoin-collateralized borrowing to unsecured, interest-free long-term funding.
In conjunction with this financing, the company will entrust the purchase of up to approximately ¥25.3 billion and 96,934,800 shares as part of its share repurchase framework through the Tokyo Stock Exchange’s off-auction trading. The purchases will be based on the closing price of ¥261 on the 13th, and the results will be announced after the close of trading.
An analyst noted that the subscription price for the convertible bonds was set 2.5% above par. The fact that the bonds are being issued for markets outside the United States, eliminating the need for review by the U.S. SEC, is also expected to affect the timing of payments in the short term.
There is also a view that, combined with the share repurchase, the offering will curb selling pressure from the free float and provide an outlet for short selling. Metaplanet has stated that it intends to strengthen the financial foundation of its bitcoin-holding strategy.