Tokyo-listed Bitcoin treasury company Metaplanet has secured a $100 million Bitcoin-backed loan. The company plans to use these funds for additional Bitcoin purchases and to repurchase its own shares.
According to a filing on October 31, the funds were borrowed under a credit agreement that allows the company to obtain short-term financing using its Bitcoin holdings as collateral. The identity of the lender was not disclosed. The loan carries a benchmark US dollar rate plus a spread and can be repaid at any time.
Metaplanet stated that the loan structure is conservative. The company holds 30,823 BTC, valued at approximately $3.5 billion as of the end of October. This substantial holding is sufficient to maintain healthy collateral coverage even in the event of a decline in Bitcoin's price.
The company detailed that the proceeds from the credit line may be allocated to additional Bitcoin purchases, its Bitcoin income business—where holdings are used to generate option premiums—and share repurchases, contingent on market conditions.
Metaplanet Unveils $500 Million Share Buyback Program
This announcement follows Metaplanet's recent unveiling of a 75 billion yen ($500 million) share buyback program. This program is also backed by Bitcoin-collateralized financing and aims to restore investor confidence, particularly after the company's market-based net asset value (mNAV) briefly fell below one.
Metaplanet's mNAV briefly dipped to 0.88 last month before recovering to above parity. During this dip, the company temporarily halted new Bitcoin purchases. However, it reaffirmed its commitment to its objective of acquiring 210,000 BTC by 2027.
Metaplanet anticipates a minor financial impact from the $100 million drawdown on its 2025 fiscal results. Nevertheless, the company has pledged to disclose any material changes should they occur.
S&P Assigns "B-" Rating to Michael Saylor's Strategy Company
Last week, S&P Global Ratings issued a "B-" speculative-grade rating to Michael Saylor's Bitcoin treasury company, Strategy. The rating agency cited the company's significant Bitcoin concentration, limited liquidity, and narrow business focus as key weaknesses.
This rating comes amidst increasing scrutiny of the crypto treasury model. A recent report from 10x Research indicated that several Bitcoin treasury firms have experienced substantial collapses in their NAVs, leading to the evaporation of billions in paper wealth.
The analysts noted that the rapid growth of Bitcoin treasury companies, which issued shares at significant multiples of their actual BTC value, has now fully reversed. This trend has resulted in substantial losses for retail investors, while these firms have accumulated substantial real Bitcoin holdings.