Metaplanet, a Tokyo-based investment firm recognized for its assertive Bitcoin accumulation strategy, has successfully obtained a $100 million loan (equivalent to approximately ¥15.3 billion) by utilizing its existing Bitcoin reserves as collateral.
This significant financial maneuver, officially announced on October 31, further solidifies the company’s dedication to its “Bitcoin Treasury Strategy.” This ambitious strategy is designed to see Metaplanet accumulate a total of 210,000 BTC by the close of 2027.
Metaplanet has outlined that the newly acquired funds will be strategically allocated towards several key objectives: increasing its Bitcoin reserves, reinforcing its income-generating business operations, and potentially executing share buybacks, contingent upon prevailing market conditions.
The recent borrowing action represents approximately 3% of the company’s total Bitcoin holdings. As of October 31, Metaplanet held a substantial 30,823 BTC.
The company has stressed that the loan's collateral structure is designed to maintain a robust margin of safety. This margin is intended to remain sufficient even in the scenario of a significant market downturn. Metaplanet’s management has reaffirmed its commitment to a policy of avoiding excessive leverage, stating that borrowing will only occur within parameters that ensure the preservation of long-term financial stability.
Strategic Allocation of Funds
A portion of the capital raised through this loan will be channeled into supporting Metaplanet’s “Income Business.” This division is actively engaged in generating consistent revenue streams through the creation and sale of cash-secured Bitcoin options.
These financial products enable the firm to earn premium income while maintaining its Bitcoin holdings, thereby providing a partial hedge against the inherent risks associated with market volatility. Projections indicate that this business segment is expected to achieve revenues of ¥2.44 billion in the third quarter of 2025. This figure represents a substantial increase, marking a 3.5-fold rise from the ¥690 million reported in the same quarter of the previous year.
Furthermore, Metaplanet has indicated its intention to consider share buybacks as part of a ¥75 billion authorization that was established at the end of October. The company views this measure as a strategic approach to enhance shareholder returns and maintain operational flexibility in response to evolving market dynamics.
Loan Facility Details
The $100 million loan is an integral component of a larger $500 million credit facility (approximately ¥76.4 billion) that was initially announced on October 28. The identity of the lender for this facility has not been disclosed. Notably, the credit facility does not have a fixed maturity date, which grants Metaplanet the discretion to repay the loan at any point in time.