Metaplanet, a publicly traded cryptocurrency treasury company based in Tokyo, has secured an additional $130 million as part of its $500 million Bitcoin 
$76,467-backed credit line. With this transaction, completed on November 21, the company’s total credit usage has reached $230 million. The funds will be allocated towards new Bitcoin acquisitions, revenue-generating activities, and share buybacks depending on market conditions.
Bitcoin-Backed Loans and Strategic Financial Management
Metaplanet’s recent borrowing emphasizes the expanded application of its existing credit model, relying on Bitcoin reserves. The company disclosed that the loan is subject to a variable interest rate based on the U.S. dollar and is automatically renewed daily. The collateral for the loan is underpinned by Metaplanet’s Bitcoin holdings on its balance sheet, offering repayment flexibility.
As per Metaplanet’s statement, their reserve of 30,823 BTC is valued at approximately $2.7 billion at current prices. These assets provide a robust collateral buffer in the credit framework. The management ensures that financial policies are followed to maintain collateral ratios even during price fluctuations, and debt levels are kept within safe margins despite market volatility.
A portion of the new funds will be directed towards the income-generating division focused on selling Bitcoin options to earn premium revenue. The remaining funds are intended to expand the Bitcoin portfolio or conduct share buybacks when market conditions are favorable, with the company projecting a limited impact on the 2025 fiscal year results.
Metaplanet’s Market Valuation Under Pressure
Metaplanet holds the fourth-largest Bitcoin treasury among publicly listed companies, following Strategy, MARA, and Twenty One. However, these companies have experienced significant declines in share values in recent months. Since June, Metaplanet’s shares have dropped by 81%, reducing its market valuation to net asset value ratio to 0.81.
The cost basis of Metaplanet’s Bitcoin assets is approximately $3.3 billion, indicating an unrealized loss of around $600 million at current market prices. Regardless, management remains committed to their Bitcoin-focused financial strategies, maintaining efforts to build a Bitcoin-based financial infrastructure in the long run.
