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

Japan's Metaplanet Inc. has taken out a $100 million loan, secured against a portion of its 30,823 BTC reserve, to execute further bitcoin acquisitions amid a market dip. The borrowing, executed on October 31 under an existing credit facility, carries a floating interest rate and can be repaid anytime. The company stated the pledged Bitcoin represents only a small fraction of its holdings, emphasizing a conservative financial management policy against excessive leverage. The loan proceeds will fund more Bitcoin purchases and support its "Bitcoin Income Generation" program, which uses reserves for option premiums, with potential funds also allocated for share repurchases. This move follows a recent $500 million credit line for a share buyback program aimed at lifting its market-to-net-asset-value (MNAV) ratio, which had briefly fallen below parity. Despite a recent slump in its share price, Metaplanet maintains its long-term goal of holding 210,000 BTC by 2027.

(Source：The Block)