Metaplanet Secures $100M Loan with Bitcoin Collateral for Expansion
Metaplanet Inc. secured a $100 million loan using its Bitcoin holdings as collateral, finalized on Oct. 31. The company holds 30,823 BTC, valued at $3.13 billion. The lender is undisclosed, and the loan can be repaid flexibly with interest based on a USD rate.
- The loan is part of a $500 million credit facility.
- Funds are allocated for further Bitcoin purchases, expanding Metaplanet's Bitcoin Income Generation business, and potential share repurchases.
- The income strategy involves cash-collateralized Bitcoin options, generating significant revenue growth.
- The company's Bitcoin position provides sufficient coverage against the loan, representing 3% of total holdings.
- Metaplanet practices conservative financial management to avoid excessive leverage.
Strategically, this move follows a decline in the company's modified net asset value (mNAV) and aims to bolster its Bitcoin Treasury Strategy targeting 210,000 BTC by December 2027. This mirrors other firms' strategies of increasing Bitcoin holdings through various financial means.