Metaplanet Secures $100 Million Loan to Buy More Bitcoin

Japan's Metaplanet Inc. continues its aggressive Bitcoin strategy with a fresh $100 million loan, using its substantial Bitcoin holdings as collateral to capitalize on recent market weakness. The Tokyo-based firm executed the borrowing on October 31, drawing from an established credit facility to fund additional Bitcoin purchases. This step underscores Metaplanet's commitment to building a robust digital asset portfolio even as prices hover near four-month lows around $103,000.

The loan is secured by a portion of Metaplanet's 30,823 BTC reserve, valued at approximately $3.2 billion. Company officials emphasized that the pledged assets represent just a small slice of their total holdings, allowing flexibility without overextending financial positions. The arrangement features a floating interest rate linked to U.S. dollar benchmarks, with repayment options available at any point to adapt to evolving conditions.

Metaplanet plans to direct the proceeds toward expanding its Bitcoin treasury and advancing its Bitcoin Income Generation program. This initiative leverages reserves to secure option premiums, creating an additional revenue stream from existing assets. Depending on market dynamics, a portion of the funds could also fuel share repurchases to strengthen investor confidence.

Building a Long Term Bitcoin Fortress

Metaplanet's current Bitcoin position reflects a modest unrealized dip, with holdings valued about 4.4% below an average acquisition cost of $108,036 per coin. Despite this temporary setback, the company holds the fourth-largest public Bitcoin treasury globally, positioned behind leaders like Strategy, MARA Holdings, and XXI. This ranking highlights Metaplanet's rising profile in the corporate adoption of Bitcoin as a balance sheet staple.

The latest financing builds on a $500 million credit line announced earlier for a targeted share-buyback effort. That program seeks to elevate the firm's market-to-net-asset-value ratio, a key metric comparing stock valuation to underlying Bitcoin assets. The ratio dipped under parity in mid-October but has since climbed back to around 1.03 times, signaling a partial recovery in market sentiment.

Year to date, Metaplanet shares have climbed nearly 30%, though they remain sharply down more than 81% from a May high exceeding $15.30, now trading at $2.79. Executives view these fluctuations as opportunities to accumulate at favorable prices, aligning with broader goals of resilience in volatile markets. The company's approach draws parallels to other firms treating Bitcoin as a hedge against traditional financial risks.

Looking ahead, Metaplanet sets its sights on amassing 210,000 BTC by 2027, equivalent to 1% of Bitcoin's total eventual supply after all coins are mined. This ambitious target positions the firm as a serious player in the ecosystem, potentially influencing corporate treasury trends worldwide. Investors watch closely as Metaplanet navigates the interplay between debt, digital assets, and equity performance.

The move arrives at a pivotal moment for Bitcoin, with global economic uncertainties prompting renewed interest in decentralized stores of value. Metaplanet's actions could inspire similar strategies among peers, reinforcing Bitcoin's role in diversified portfolios. As the firm balances leverage with caution, its playbook offers a case study in strategic crypto integration for publicly traded entities.

In the broader context, this loan reflects Japan's evolving stance on digital assets, where regulatory clarity has encouraged institutional participation. Metaplanet, once focused on hotel operations, has pivoted sharply toward Bitcoin-centric finance since 2024. The transformation has not only reshaped its business model but also drawn international attention to Tokyo's stock exchange as a hub for crypto innovation.

Analysts note that while short-term price pressures persist, Metaplanet's conservative leverage policy mitigates downside risks. The undisclosed lender's involvement suggests growing comfort among traditional financiers with Bitcoin-backed deals. This development may pave the way for more hybrid financing tools in the sector.