Tokyo-listed Bitcoin treasury company Metaplanet has secured a $100 million loan backed by its Bitcoin holdings.
The funding, disclosed in a Tuesday filing, was borrowed on October 31 under a credit agreement that allows the company to use its Bitcoin as collateral for short-term financing, amid BTC dropping in the last week.
Metaplanet did not reveal the lender’s identity but confirmed the loan carries a benchmark US dollar rate plus a spread and can be repaid at any time.
The company described the structure as conservative, noting it holds 30,823 BTC, valued at roughly $3.5 billion as of the end of October.
Metaplanet said this position is large enough to maintain strong collateral coverage even if Bitcoin’s price declines.
Loan Proceeds to Support Bitcoin Purchases and Share Buybacks
Proceeds from the credit line may be deployed in several areas, the company said.
These include additional Bitcoin purchases, its Bitcoin income business — where holdings are used to earn option premiums — and share repurchases, depending on market conditions.
Shares in Metaplanet fell 2% following the announcement.
The move comes just days after the company unveiled a 75 billion yen ($500 million) share buyback program.
Like the recent loan, the buyback program is also backed by Bitcoin-collateralized financing.
Metaplanet said the program is designed to restore investor confidence after its market-based net asset value (mNAV) fell below 1.0.
mNAV Dip and Company’s Acquisition Plans
The mNAV, a metric comparing the company’s market value to its Bitcoin holdings, briefly dropped to 0.88 last month.
It has since rebounded to above parity, according to the company.
During the dip, Metaplanet temporarily paused new Bitcoin purchases but reiterated its commitment to acquire 210,000 BTC by 2027.
The company expects the financial impact of the $100 million drawdown on its 2025 fiscal results to be minor.
It also pledged to disclose any material changes to investors should they arise.
Market Context: Bitcoin Treasury Companies
Metaplanet’s move occurs amid wider scrutiny of Bitcoin treasury firms.
Last week, S&P Global Ratings assigned a “B-” speculative-grade rating to Michael Saylor’s Bitcoin treasury company, Strategy.
S&P cited heavy Bitcoin concentration, limited liquidity, and a narrow business focus as key weaknesses.
Critics have increasingly questioned the crypto treasury model.
A report from 10x Research noted that some Bitcoin treasury companies have seen their net asset values collapse, erasing billions in paper wealth.
Analysts argued that the boom in Bitcoin treasury firms, which issued shares at multiples of their actual Bitcoin value, has “fully round-tripped,” leaving retail investors with losses while firms accumulated real Bitcoin.
Investor Takeaways
Metaplanet’s $100 million Bitcoin-backed loan and share repurchase program reflect a broader strategy to maintain investor confidence and expand its BTC holdings.
The company’s large Bitcoin position provides a buffer against market volatility, allowing it to secure financing while continuing operations.
Investors should note, however, that Bitcoin treasury companies carry inherent risks, including high concentration in a single volatile asset and dependency on market sentiment.
The recent attention from credit rating agencies and research firms underscores the importance of monitoring liquidity, collateral coverage, and net asset value trends.
