Metaplanet borrows $100 million against its bitcoin holdings to buy the dip

Japan’s Metaplanet Inc. has taken out a $100 million loan backed by its existing bitcoin holdings to buy more of the cryptocurrency, doubling down on its accumulation strategy amid a market pullback.

The Tokyo-listed company said the borrowing was executed on Oct. 31 under a previously approved credit facility and secured by part of its 30,823 BTC reserve, worth nearly $3.2 billion. The loan carries a floating interest rate tied to U.S. dollar benchmarks and can be repaid at any time.

While the lender was not disclosed, Metaplanet said the pledged bitcoin represents only a small fraction of its holdings and that it maintains “a conservative financial management policy” to avoid excessive leverage.

Proceeds will go toward further bitcoin acquisitions and the company’s “Bitcoin Income Generation” program, which uses its reserves as collateral to earn option premiums. Some funds may also support share repurchases depending on market conditions.

Metaplanet’s bitcoin holdings are down about 4.4% from an average cost of $108,036 per coin as bitcoin trades near four-month lows around $103,000. The company ranks fourth among public bitcoin treasuries, trailing only Strategy, MARA Holdings, and Jack Mallers’ XXI.

The move follows Metaplanet’s recent $500 million credit line for a share-buyback program aimed at lifting its market-to-net-asset-value ratio, which measures the company’s valuation relative to its bitcoin holdings, and which fell below parity in mid-October before recovering to about 1.03× this week.

Despite being up nearly 30% year to date, Metaplanet shares have slumped by more than 81% from a May peak above $15.30 to $2.79 today, according to The Block's price page. The company still targets holding 210,000 BTC by 2027, which equals 1% of the total supply once all bitcoins have been mined.

Metaplanet (MTPLF) Share Price. Source: The Block Price Page