Bitcoin Updates Today: Are Bitcoin Repurchases a Risky Bet or a Brilliant Business Move?

Metaplanet Inc., recognized as Japan’s largest publicly traded

holder, has introduced a $500 million stock buyback initiative, utilizing a credit line secured by Bitcoin to help align its share price with the value of its cryptocurrency assets. The Tokyo-based company, which currently owns 30,823 BTC (valued at $3.5 billion), revealed this plan after its market-to-net-asset-value (mNAV) ratio dropped to 0.88 in late October, indicating that its shares were undervalued compared to its Bitcoin reserves, according to a . The repurchase program, which will cover 13.13% of outstanding shares and run until October 2026, is intended to increase Bitcoin returns per share and restore investor trust, as outlined in a .

The credit line, backed by the company’s Bitcoin holdings, gives Metaplanet flexibility to finance share buybacks, acquire more BTC, or provide interim funding for an upcoming preferred stock offering, according to a

. This approach is similar to strategies used by other firms with significant Bitcoin reserves, such as ETHZilla’s recent $40 million repurchase, as companies look to use digital assets to optimize their capital structures, as noted by Cointelegraph. Metaplanet’s mNAV has since recovered to 1.03, but the company has temporarily halted new Bitcoin purchases to focus on stabilizing its share price, per Coinpedia.

This move highlights the increasing trend of companies treating Bitcoin as a central tool for capital allocation. By leveraging crypto assets to fund buybacks, Metaplanet aims to decrease the number of shares in circulation and boost each share’s exposure to Bitcoin—a tactic that can lead to outperformance during Bitcoin bull runs but also heighten losses in downturns, according to a

. Experts point out that such leveraged tactics turn treasury shares into “flow-driven” assets, where returns depend not only on Bitcoin’s price but also on premium cycles and timing of issuance, as observed by CryptoSlate.

Despite recent market swings caused by geopolitical and regulatory factors, the company’s long-term objective to accumulate 210,000 BTC (representing 1% of the total 21 million supply) by 2027 remains intact, according to

. However, some critics warn that buybacks backed by Bitcoin may increase concentration risks, especially if falling prices force the company to liquidate assets to meet collateral requirements—a concern raised by CryptoSlate. Metaplanet’s disclosures do not specify the loan-to-value (LTV) ratios or margin call thresholds, leaving questions about the company’s buffer against potential losses, as also noted by CryptoSlate.

Following the announcement, Metaplanet’s share price climbed 2.3%, reflecting investor optimism that the buyback could reduce the equity discount and improve capital efficiency, as reported by Coinpedia. Still, the broader corporate Bitcoin landscape remains divided. While firms like Strategy and

have achieved significant gains through aggressive Bitcoin accumulation, skeptics and analysts warn about inflated premiums, with some calling these models “relics on the verge of extinction,” according to Yahoo Finance.

The success of Metaplanet’s approach will depend on its ability to manage Bitcoin’s price volatility, use leverage responsibly, and comply with regulations. With a $500 million credit facility and a year-long authorization period, the company is set to test whether corporate crypto treasuries can serve as a stable asset class or remain a high-risk momentum play, as discussed by CryptoSlate.