Metaplanet Secures $130 Million Bitcoin-Backed Loan

Tokyo-listed investment firm Metaplanet secured a 130 million loan on November 21, backed by its substantial Bitcoin holdings, as part of its ongoing strategy to expand cryptocurrency reserves. The borrowing, drawn from a 500 million credit facility established in late October, brings the company's total utilization of the facility to 230 million. Metaplanet, Japan's largest corporate holder of Bitcoin, plans to use the funds to acquire additional Bitcoin, grow its Bitcoin income generation operations, and pursue share repurchases when market conditions permit.

The loan features a floating interest rate tied to U.S. dollar benchmarks and renews automatically on a daily basis, allowing Metaplanet to repay it at any time. It is fully secured by the company's Bitcoin reserves, which stood at 30,823 BTC as of the latest update, valued at approximately 2.7 billion at current prices around 87,600 per Bitcoin. The firm acquired its holdings at an average cost of about 108,000 per BTC, resulting in an unrealized loss of roughly 636 million, or 19 percent of the total investment.

Metaplanet emphasized the strength of its collateral position in a recent filing. "Given the substantial...