Metaplanet Secures $100M Bitcoin-Backed Loan for BTC Acquisition and Share Buyback

Metaplanet Secures $100M Bitcoin-Backed Loan

Tokyo-listed Bitcoin treasury company Metaplanet has announced a $100 million Bitcoin-backed loan aimed at expanding its Bitcoin holdings and repurchasing company shares. This strategic financial move seeks to solidify its position in the cryptocurrency market and reassure investors. According to a Tuesday filing, the loan was secured on October 31 under a credit agreement that allows the company to utilize its Bitcoin (BTC) holdings as collateral for short-term financing. While the lender's identity remains undisclosed, Metaplanet stated that the loan bears a benchmark US dollar interest rate plus a spread, with the option for repayment at any time. Metaplanet emphasizes the conservative nature of the loan structure, highlighting its substantial holding of 30,823 BTC, valued at approximately $3.5 billion as of the end of October. This significant position, according to the company, provides ample collateral coverage even in the event of Bitcoin price fluctuations. The proceeds from this credit line are earmarked for potential further Bitcoin acquisitions, supporting the Bitcoin income business (generating option premiums), and strategic share repurchases contingent on prevailing market conditions.

$500 Million Share Buyback Program

The announcement follows shortly after Metaplanet revealed a 75 billion yen (approximately $500 million) share buyback program, also backed by Bitcoin-collateralized financing. This initiative is specifically designed to restore investor confidence following a decline in the company's market-based net asset value (mNAV) below parity. Metaplanet's mNAV experienced a brief dip to 0.88 last month before recovering to above parity. During this temporary downturn, the company temporarily suspended new Bitcoin purchases but reaffirmed its commitment to acquiring a total of 210,000 BTC by 2027. Metaplanet anticipates that the financial impact of the $100 million drawdown on its 2025 fiscal results will be minimal, while also committing to disclosing any material developments that may arise.

S&P's Rating of Michael Saylor's Strategy

Last week, S&P Global Ratings assigned a speculative-grade "B-" rating to Michael Saylor's Bitcoin treasury company, Strategy. The rating agency cited Strategy's high concentration in Bitcoin, limited liquidity, and narrow business focus as key factors contributing to the rating. The rating emerges amidst increasing scrutiny of the crypto treasury model. A recent report by 10x Research pointed out that several Bitcoin treasury firms have witnessed significant collapses in their net asset values (NAVs), resulting in the erosion of billions of dollars in paper wealth. The analysts stated that the surge in Bitcoin treasury companies, which issued shares at multiples of their actual BTC value, has come full circle, leaving retail investors facing substantial losses while the companies accumulated actual Bitcoin.