Tokyo-listed Company Accelerates BTC Purchases Through Collateralized Loans
Metaplanet, a Tokyo-listed Bitcoin treasury company, has drawn an additional $130 million in Bitcoin-backed credit, signaling a continued push to scale its BTC holdings and income-generating programs. The new loan was executed under a previously announced $500 million credit facility, bringing the company’s cumulative borrowing to $230 million, up from $100 million drawn earlier in October.
The firm noted that using Bitcoin as collateral exposes it to margin calls if BTC prices decline, but it expressed confidence in its reserve size, stating that it maintains “sufficient collateral headroom” to absorb potential volatility.
Two-Track Funding Strategy: Debt and Equity
Metaplanet employs a dual funding strategy to expand its Bitcoin treasury. First, the credit facility provides short-term, flexible liquidity secured by BTC, enabling the company to buy more Bitcoin, fund income programs, and support share buybacks without issuing additional stock.
Second, the company plans to raise $135 million through Class B perpetual preferred shares. These shares represent long-term funding, offer investors fixed yearly payouts, and can potentially be converted into common stock or repurchased under certain conditions. This combination of debt and equity allows Metaplanet to scale its Bitcoin strategy even during periods of unrealized losses.
Holding Through Market Volatility
Despite sitting on a nearly 20% unrealized loss—having purchased BTC at an average price of $108,036 while current prices hover around $87,000—Metaplanet continues to accumulate Bitcoin. Dylan LeClair, Bitcoin strategy director, reaffirmed on X that the company is “HODLing” its BTC.
The timing of the latest loan, executed as Bitcoin briefly dipped to $82,000, suggests that Metaplanet may have capitalized on market volatility to buy the dip, according to community observations.
Metaplanet’s approach highlights how strategic borrowing and specialized equity issuance can fuel a Bitcoin treasury strategy while maintaining operational flexibility, even in challenging market conditions. The company’s persistent accumulation reinforces its commitment to long-term Bitcoin growth despite short-term market pressures.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.