Metaplanet Steps Up Its Bitcoin Bet With a New $130M Loan

Fresh activity in Metaplanet’s financing plan suggests the company is accelerating efforts to increase its Bitcoin exposure amid ongoing market volatility. A newly executed $130 million loan backed by its BTC reserves signals a continued commitment to a balance-sheet strategy built around borrowing and long-term equity funding. 

Fresh Credit Draw Lifts BTC-Backed Borrowing to $230M

Tokyo-listed Metaplanet confirmed on Tuesday that it drew the loan last Friday under its existing $500 million Bitcoin-backed credit facility. This latest pull raises total borrowing from the line to $230 million, up from the $100 million reported after its Oct. 31 credit pull. Access to this facility gives the company rapid liquidity by allowing it to post its Bitcoin reserves as collateral.

Executives acknowledged that the firm faces potential collateral calls if BTC declines sharply, adding that the scale of its reserves provides the cushion needed to manage price swings without immediate pressure. According to the company, its holdings are large enough to absorb typical volatility.

Metaplanet’s financing activity fits into a broader two-track approach to supporting its Bitcoin strategy. Along with the credit line, the firm is moving forward with a plan to raise $135 million through the sale of Class B perpetual preferred shares. 

To clarify how the raised capital will be used, the company outlined several priorities:

• Buying additional Bitcoin to grow long-term reserves.
• Supporting its Bitcoin income-generation business.
• Using Bitcoin as collateral to sell options and earn premium income.
• Providing liquidity for potential share buybacks.
• Maintaining flexibility without issuing more common stock.

Strategic Borrowing Signals Metaplanet’s Confidence in Bitcoin Outlook

Short-term liquidity comes primarily from the credit facility tied directly to BTC collateral. This allows Metaplanet to expand its BTC income business, acquire more BTC during market dips, and conduct buybacks when conditions allow. Long-term capital comes from the preferred share issuance, which offers investors a fixed yearly payout and the option to convert the shares into common stock. 

Under certain conditions, the company can also repurchase those shares. Used together, these channels give Metaplanet room to continue accumulating Bitcoin even during periods when market conditions strain its balance sheet.

According to public data from BitcoinTreasuries.NET, Metaplanet currently holds Bitcoin at an average cost of $108,036 per coin. With BTC trading near $87,000, the company sits on an unrealized loss of roughly 20%. Even so, the company does not plan to change its market strategy. Bitcoin strategy director Dylan LeClair stated on X that the firm intends to continue “HODLing.”

Some observers have suggested that the timing of the new loan hints at opportunistic buying. Ragnar, a well-known commentator, noted that the company executed the loan on a day when Bitcoin briefly dipped to around $82,000, implying that Metaplanet may have taken advantage of the drop.