- Metaplanet secured a $130M loan from its $500M Bitcoin-backed credit line.
- The loan is backed by 30,823 BTC, maintaining a strong collateral buffer despite market volatility.
- Funds will be used for Bitcoin acquisitions, income strategies, and potential share repurchases.
Metaplanet has taken out a new $130 million loan from its previously announced $500 million Bitcoin-backed credit line. This brings the total amount it has borrowed so far to $230 million.
The Tokyo-listed company said the loan was issued on November 21 and uses the same terms announced in October. The lender hasn’t been named at their request.
Notably, the loan has a floating U.S. dollar interest rate with an added spread, and it renews daily, giving Metaplanet the option to repay whenever it wants.
Backed by 30,823 BTC, Maintaining Strong Collateral Headroom
According to the official filing, the borrowing is secured by the company’s substantial Bitcoin holdings. As of October 31, Metaplanet held 30,823 BTC, worth $2.6 billion, making it the fourth-largest publicly traded Bitcoin treasury globally.
Management reiterated that, despite the typical risks associated with BTC-collateralized borrowing, the company maintains a deep collateral cushion.
Management acknowledged the usual risks of using Bitcoin as collateral, such as potential margin calls if prices fall. However, they emphasized that the company keeps a strong collateral buffer and only borrows within conservative limits to stay protected during major market swings.
Overall, Metaplanet says it remains confident in Bitcoin as a long-term asset, even though its holdings are currently at an unrealized loss of about $600 million based on a $3.3 billion cost basis.
Related: Metaplanet Unveils $150M Bitcoin-Linked Capital Plan as It Reshapes Share Structure
Funds Target More Bitcoin, Income Strategies, and Buybacks
The company stated that the new $130M infusion will be deployed toward:
- Additional Bitcoin acquisitions, enabling the firm to buy the dip as BTC attempts to reclaim the $90,000 level.
- Expansion of its Bitcoin income generation business, which involves selling Bitcoin options to earn premium income, using BTC as collateral.
- Share repurchases, subject to evolving market conditions.
Following Michael Saylor’s Strategy
Meanwhile, Metaplanet’s new loan comes as Michael Saylor’s Strategy (MSTR), the sector leader, has slowed its Bitcoin buying. Over the past three months, Strategy added about 17,000 BTC, while Metaplanet quietly acquired over 11,000 BTC.
Both companies now trade close to their net asset value, with Metaplanet at 1.04x and Strategy at 1.03x. Metaplanet’s stock has fallen 62% in six months but rose 2.24% to 365 yen on Tuesday after the announcement.
The company said the new borrowing will have little immediate effect on its 2025 results and promised to report if any major financial impact arises.
Related: Metaplanet’s Bitcoin Strategy Aims to Acquire 1% of the Total BTC Supply by 2027
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Source: https://coinedition.com/metaplanet-draws-130m-loan-to-buy-btc-holdings-rise/
