Metaplanet Taps $100 Million Bitcoin-Backed Loan to Fuel BTC Acquisitions and Share Buyback

In a bold strategic move, Tokyo-listed Metaplanet announced that it has secured a US $100 million loan using its substantial BTC reserves as collateral. The financing, consummated on October 31 under a credit agreement, will enable the company to purchase additional Bitcoin, expand its crypto income business, and support a substantial share repurchase program. 

Metaplanet currently holds 30,823 BTC which at the end of October were valued around US $3.3 billion making the borrowed amount roughly 3 % of its Bitcoin holdings, a fact the company emphasised as a conservative leverage approach. 

The loan is drawn from a larger US $500 million facility announced at the end of October. While the lender’s identity remains undisclosed, the company said the credit line is open-ended, can be repaid at any time, and carries a benchmark dollar interest rate plus a spread. 

Strategic intent: acquisition, income and value

Metaplanet is using the loan proceeds to execute a three-fold strategy. Firstly, the company will resume its Bitcoin treasury accumulation, targeting additional BTC purchases to bolster its long-term reserve position. Secondly, it will expand its options business selling cash-collateralised Bitcoin options that generate income while maintaining exposure to BTC upside.  


Thirdly, the company has signalled potential uptake of its previously approved 75 billion yen (approx. US $500 million) share buyback programme, designed to enhance shareholder value when market multiples compress. 

Why this transaction matters

The move underscores several important trends in the corporate crypto treasury space. By leveraging its own Bitcoin holdings as collateral, Metaplanet can access traditional credit markets while preserving its exposure to digital-asset appreciation. This hybrid finance approach bridges conventional banking and crypto-native strategies. It also reflects growing institutional maturity around crypto collateralisation, risk-management and corporate treasury innovation.

Moreover, the decision to undertake the borrowing at only 3 % of its holdings demonstrates a cautious leveraging philosophy even as the company continues a bullish accumulation strategy. This indicates balance between aggressive positioning and collateral safety.

Key metrics and targets

• Holding: 30,823 BTC (approx. US $3.3 billion) as of end of October. 

• Loan size: US $100 million, drawn 31 October. 

• Credit facility: up to US $500 million. 

• Share buyback cap: 75 billion yen (~US $500 million). 

• Long-term goal: Acquire 210,000 BTC by end of 2027.

Risks and considerations

While the structure is conservative relative to the size of collateral, the strategy still carries risk. A sharp decline in the price of Bitcoin could impair collateral value, although the 3 % figure provides margin of safety.

 The open-ended nature of the loan means Metaplanet has flexibility, but also the obligation to manage servicing and repayment discipline. Furthermore, share buyback execution depends on market conditions and valuation multiples.

FAQs

Q1: What exactly is the loan that Metaplanet secured?
Metaplanet drew US $100 million from its credit facility on October 31, using its Bitcoin holdings as collateral. The loan is open-ended, can be repaid at any time, and carries a benchmark dollar interest rate plus a spread.

Q2: Why is Metaplanet using a Bitcoin-backed loan instead of just buying more BTC outright?
By borrowing against its existing Bitcoin, Metaplanet retains ownership of the asset and its upside potential, while gaining liquidity for additional purchases, options trades and share repurchases. It’s a way to leverage the asset without immediately selling it.

Q3: How safe is this borrowing given market volatility?
Metaplanet emphasised that the loan amount is only about 3 % of its Bitcoin holdings (30,823 BTC), providing a substantial buffer should Bitcoin’s price fall. That said, Bitcoin remains volatile, so collateral value risk persists. 

Q4: What are the purposes of the loan proceeds?
The funds will be used to (1) acquire additional Bitcoin reserves, (2) expand its income business that sells cash-secured Bitcoin options, and (3) potentially execute a share buyback programme under its approved cap of 75 billion yen. 

Q5: What is Metaplanet’s long-term Bitcoin strategy?
The company aims to accumulate 210,000 BTC by the end of 2027, positioning Bitcoin as its central reserve asset and building scale among corporate Bitcoin-holding firms. 

Q6: What implications does this move have for the broader crypto-treasury sector?
The transaction highlights growing use of crypto-assets as collateral in corporate financing, showing that treasury firms are combining asset accumulation with credit markets. It may set a precedent for other companies looking to optimise capital and reserve strategies.