Tokyo-listed digital asset company, Metaplanet, has secured a $100 million Bitcoin-backed loan. These funds are designated for acquiring additional Bitcoin and repurchasing company shares.
The loan, formalized on October 31 under a credit agreement, allows the company to obtain short-term financing using its Bitcoin holdings as collateral. The lender's identity was not disclosed, but Metaplanet stated the loan carries a benchmark US dollar rate plus a spread and can be repaid at any time.
Metaplanet emphasized the conservative structure of the loan, highlighting its substantial holding of 30,823 BTC, valued at approximately $3.5 billion as of late October. This position is deemed large enough to maintain healthy collateral coverage, even in the event of a Bitcoin price decline.
Proceeds from this credit facility may be allocated for several purposes, including:
- Additional Bitcoin purchases.
- Development of its Bitcoin income business, where BTC holdings are used to earn option premiums.
- Share repurchases, depending on market conditions.
This loan announcement follows days after Metaplanet unveiled a 75 billion yen ($500 million) share buyback program, also supported by Bitcoin-collateralized financing. This program aims to restore investor confidence after the company’s market-based net asset value (mNAV) briefly fell below one.
While Metaplanet's mNAV temporarily dropped to 0.88 last month before recovering, the company paused new Bitcoin purchases during the dip but remains committed to its goal of acquiring 210,000 BTC by 2027.
Metaplanet anticipates a minor financial impact from the $100 million drawdown on its 2025 fiscal results but pledged to disclose any material changes should they arise. Metaplanet shares reportedly dropped 2% on the day of the announcement.
In a broader context concerning the Bitcoin treasury company model, S&P Global Ratings recently assigned a "B-" speculative-grade rating to MicroStrategy, another Bitcoin treasury firm, citing its heavy Bitcoin concentration, limited liquidity, and narrow business focus as key weaknesses.