The Japanese Bitcoin treasury company is raising $329 million to repurchase shares and refinance loans as its borrowing ratio exceeds internal limits.

Metaplanet plans to raise $329 million to refinance Bitcoin-backed loans and fund share buybacks after its stock has declined 90% from its peak.

On Oct. 13, the Japanese Bitcoin treasury company announced plans to issue ¥52 billion ($329 million) in unsecured, zero-coupon Euro-yen convertible bonds due in 2031.

Expected to close on Oct. 29, the offering will target investors primarily in Europe and Asia, with the bonds slated for listing on the Singapore Exchange.

The financing would let Metaplanet replace part of its interest-bearing, Bitcoin-collateralized debt with borrowing that requires no regular interest payments. The company expects the restructuring to free up pledged Bitcoin, reduce financing costs and improve financial flexibility without selling its cryptocurrency holdings.

Metaplanet's refinancing comes as its reliance on Bitcoin-backed borrowing has exceeded the company's internal risk limits.

As of Sept. 30, the company had approximately $649.5 million outstanding under an $800 million credit facility secured by its Bitcoin holdings.

That represented 17.7% of the net asset value of its Bitcoin reserves, well above management's guideline to keep the ratio below 10%.

Metaplanet, which held 44,000 BTC at the end of September, acknowledged that further declines in Bitcoin prices could increase the borrowing ratio by reducing the value of its cryptocurrency holdings.

6 billion ($149 million) of the new bond proceeds to repay part of its outstanding loans in November.

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