BTC News: Metaplanet Borrows Another $130 Million To Buy Bitcoin

Metaplanet draws $130M from its BTC-backed credit facility to expand Bitcoin holdings, grow revenue plans, and explore share buybacks.

Metaplanet has advanced its financing approach after drawing a new $130 million loan backed by Bitcoin reserves. The company said the fresh borrowing will support more Bitcoin acquisitions.

It will also be used to expand its income business and fund possible share repurchases.

Metaplanet Strengthens Position Through New Credit Draw

Metaplanet revealed that it accessed its bitcoin-backed credit facility for another $130 million. This raised total utilisation to $230 million out of the $500 million limit.

The announcement came after the loan was executed on November 21. The lender chose to stay unnamed at its own request, but the company shared only the structure of the terms. 

The loan renews each day, follows a US dollar rate plus a spread and can be repaid whenever the company chooses.

Management said the borrowing fits into the long term plan that uses Bitcoin as the main balance sheet anchor. The credit facility relies on pledged Bitcoin as collateral. 

The company holds a large reserve and believes this structure gives stronger coverage than assets tied to traditional markets.

As of October 31, Metaplanet held 30,823 BTC. The reserve carried a value of about $3.5 billion at that time. The company said this provides enough room to maintain strong collateral coverage, even during heavy volatility across the market.

Metaplanet Focuses on Bitcoin Expansion and Income Growth

Metaplanet said the new loan will support several ongoing plans. The first goal is continued Bitcoin accumulation.

The company has grown its reserve for years and says this fits into its long term structure for treasury management.

Another target is the expansion of its income business. The plan involves using Bitcoin as collateral to sell options and collect premium revenue. 

The company said this method provides added income without selling assets. The credit facility structure supports this by giving access to capital while keeping reserves untouched.

Management also mentioned possible share repurchases. The company has watched its stock fall since June. Shares rose about 2% following the loan announcement, but remain far below the highs reached earlier in the year. 

Metaplanet shares rose after the announcement | source- Google Finance

The company did not say whether repurchases would begin soon but suggested it aims to keep the option open.

Related Reading: Metaplanet Raises $135 Million to Expand Bitcoin Holdings

Market Reaction and Company Position After the Announcement

Market observers noted that Metaplanet continues to build its identity around bitcoin-backed financing. 

The company treats Bitcoin reserves as its main strategic anchor and its heavy reserves allow it to take on borrowing while keeping a large collateral cushion.

The new loan drew interest because of its structure. The daily renewal feature makes borrowing flexible and the company said this helps manage its cash position without forcing long commitments or fixed maturity schedules. 

The option to repay funds at any time also adds more control.

The company’s stock reacted with modest gains. TradingView data showed that the share price rose to 365 yen following the announcement. The move helped offset some of the pressure seen in recent months. Even so, shares remain more than 80% below the record set in June.

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