Metaplanet borrows another $130 million against its bitcoin holdings to buy more BTC

Tokyo-listed DAT firm Metaplanet has borrowed another $130 million against its bitcoin holdings, expanding its use of a $500 million credit facility as it continues to accumulate BTC and grow its bitcoin-based income strategies.

The company disclosed the borrowing in a notice on Tuesday, stating that the loan was executed on Nov. 21 under previously approved terms. As was the case with its initial $100 million loan under the facility, the lender was undisclosed at the request of the counterparty, Metaplanet said.

According to the notice, the $130 million loan carries a floating rate tied to U.S. dollar benchmarks and is automatically renewed on a daily basis. The company may repay the loan at any time, and all borrowings under the facility are secured by bitcoin held on Metaplanet's balance sheet.

While acknowledging that a decline in the price of bitcoin during the loan term may require additional collateral to be pledged, Metaplanet emphasized that its 30,823 BTC reserve — valued at roughly $2.7 billion at current prices — provides substantial collateral coverage relative to the size of the loan and said it expects to maintain "sufficient collateral headroom" given the scale of its holdings. 

The firm stressed that its financial policy limits borrowing to levels where collateral buffers can be maintained even during significant price volatility. With this latest draw, Metaplanet has now used $230 million of the total $500 million credit line.

Metaplanet said it will use the loan proceeds to fund additional bitcoin acquisitions, expansion of its bitcoin income-generation business, and share repurchases, depending on market conditions. The company specified that funds directed to its income generation business will serve as collateral for selling bitcoin options to earn premium income.

The financial impact of the new borrowing on its results for the fiscal year ending December 2025 is expected to be minimal, the firm said, adding that any material developments would be disclosed promptly.

Share price and bitcoin holdings value under pressure

Metaplanet is the fourth-largest publicly traded bitcoin treasury company behind Michael Saylor's Strategy, bitcoin miner MARA, and Tether-backed Twenty One. 

However, the value of many of the cohort's shares is down substantially from their summer peaks, and their market cap-to-net asset value ratios have sharply contracted. Metaplanet's stock is down 81% since June, for example, with its mNAV currently sitting at around 0.81, according to The Block's Metaplanet price page.

At a cost basis of around $3.3 billion, Metaplanet's bitcoin holdings are currently sitting on an unrealized loss of around $600 million.