Bitcoin News Today: Vanguard's $2.1M Bet Validates Bitcoin Treasury Strategy at Metaplanet

Metaplanet Inc. (OTCQX: MTPLF) is poised to test a five-month high as the Bitcoin treasury company announced a share buyback program and secured a significant investment from Vanguard Group's Japan ETF. The Tokyo-listed firm, which holds Bitcoin treasury assets, disclosed on October 28 a new Capital Allocation Policy aimed at balancing capital raising with proactive buybacks and strategic issuances. This move comes amid growing institutional interest in Bitcoin treasuries, with Vanguard FTSE Japan ETF (VJPN) revealing for the first time that it owns 704,500 shares of Metaplanet, valued at approximately $2.1 million.

Under the revised policy, Metaplanet will prioritize share repurchases when its common stock trades below intrinsic value, using cash reserves, preferred-share proceeds, or credit facilities. The company also plans to issue perpetual preferred shares to fund further Bitcoin purchases, with a goal of listing these securities promptly to manage refinancing risks. Additionally, Metaplanet will halt common-share issuances when its modified net asset value (mNAV)-a metric comparing enterprise value to Bitcoin NAV-drops below 1x, a measure designed to prevent dilution. At the time of the announcement, Metaplanet's mNAV stood at 1.03x, slightly above the threshold.

The buyback program, which authorizes the repurchase of up to 150 million shares, aligns with broader market confidence in Bitcoin treasuries. Vanguard's investment, disclosed by multiple sources, underscores institutional validation for Metaplanet's strategy. The ETF's purchase of 704,500 shares reflects a growing trend of traditional asset managers allocating capital to Bitcoin-linked equities, particularly as the cryptocurrency's price volatility stabilizes.

Market analysts note that Metaplanet's share price has declined 74% in Japanese yen from its June 16 highs, creating a potential buying opportunity. The company's recent suspension of common-stock dilution further supports investor sentiment. Meanwhile, technical indicators suggest the stock is approaching oversold territory, with a relative strength index (RSI) near critical levels.

Metaplanet's strategic pivot to a more disciplined capital structure coincides with broader industry shifts. Competitors like Evernorth Holdings, a Ripple-backed firm, are also building XRP treasuries, signaling a diversification of institutional crypto strategies. However, Metaplanet's focus on Bitcoin-currently trading near $70,000-positions it to benefit from continued demand for the dominant digital asset.

The firm's stock closed 2.2% higher in Tokyo trading on October 28, reflecting optimism over its new policy. With Bitcoin's price stabilizing and institutional adoption accelerating, Metaplanet's share repurchases and Vanguard's investment may catalyze a rebound in its equity valuation. Investors will closely watch future mNAV updates and Bitcoin price movements to gauge the effectiveness of the company's capital reallocation strategy.