Metaplanet Expands Bitcoin-Backed Credit Amid Strategic Growth

According to Cointelegraph, Tokyo-listed Bitcoin treasury company Metaplanet has secured an additional $130 million in Bitcoin-backed credit, furthering its strategy of collateralized borrowing to enhance Bitcoin acquisitions, income-generation initiatives, and potential share buybacks. On Tuesday, Metaplanet revealed that it executed the loan on Friday as part of a previously announced credit facility. This borrowing is a segment of the company’s $500 million credit line, which enables it to obtain short-term liquidity using its Bitcoin (BTC) as collateral. With the new capital, Metaplanet has now drawn a total of $230 million in loans from the facility, an increase from the $100 million disclosed for an earlier credit pull on Oct. 31. The company acknowledged the risk of collateral calls if the BTC price declines but expressed confidence in its reserve size, stating it is substantial enough to withstand market volatility. Metaplanet emphasized that the scale of its Bitcoin holdings relative to the loan amount provides sufficient collateral headroom. Metaplanet’s latest loan underscores its dual-track funding strategy, which combines debt and equity instruments to support the ongoing accumulation of Bitcoin. The $500 million Bitcoin-backed credit facility offers Metaplanet flexible, on-demand liquidity secured by its BTC reserves, enabling the company to expand its Bitcoin income program, purchase more Bitcoin, and facilitate share buybacks without issuing new stock. In addition to the credit line, Metaplanet plans to raise $135 million through the issuance of new Class B perpetual preferred shares. These shares represent long-term funding, offering investors a fixed yearly payout and the option to convert them into regular stock, with potential buyback conditions. Despite facing nearly a 20% unrealized loss on its Bitcoin investments, as indicated by BitcoinTreasuries.NET data, Metaplanet remains committed to holding and accumulating more BTC. The company purchased its Bitcoin at an average cost of $108,036, while the current BTC price is approximately $87,000. Bitcoin strategy director Dylan LeClair affirmed on X that the company is "HODLing." Community member Ragnar linked the loan’s execution date to Bitcoin’s drop to $82,000 on Friday, suggesting that Metaplanet likely capitalized on the Bitcoin dip. Ragnar expressed optimism about the stock, noting the strategic timing of the purchase.