Metaplanet Expands Bitcoin Holdings With $130 Million Loan

By: Isha Das

Metaplanet, the Bitcoin treasury company listed in Tokyo, has continued to expand its Bitcoin holdings through strategic financial maneuvers, this time securing an additional $130 million in Bitcoin-backed credit. This move underscores the company’s aggressive use of debt and preferred equity aimed at uplifting Bitcoin purchases and enhancing income-generation strategies.

On Tuesday, Metaplanet revealed that it had executed this substantial loan last Friday, as part of a previously outlined credit facility agreement. The grade of financial flexibility provided by this $500 million credit line allows Metaplanet to draw short-term liquidity, with Bitcoin as collateral. The fresh capital injection raises its cumulative loan draw from the facility to $230 million, following an earlier $100 million draw documented at the end of October 2023.

The strategic use of Bitcoin as collateral not only aids in streamlining Metaplanet's liquidity needs but also propels the company towards its potential objectives like share buybacks, according to their publicly shared strategies. By aligning their Bitcoin treasury approach with robust financing, Metaplanet continues to be a substantial player in the realm of Bitcoin acquisition, holding a staggering $2.7 billion in Bitcoin assets. This calculated maneuver cements their commitment to scaling their Bitcoin reserves responsibly while leveraging institutional grade financial instruments.