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Metaplanet secures $130 million loan to fuel Bitcoin purchase

  • Metaplanet announced it has executed a $130 million loan under its credit facility.
  • The firm secured the loan using its Bitcoin holdings.
  • Metaplanet aims to use the loan to purchase additional Bitcoin and boost its Bitcoin-based revenue operations.

Japan-based Bitcoin treasury firm Metaplanet has tapped its $500 million credit line with a new $130 million loan.

In a Tuesday filing, the company said the transaction was completed on November 21 under the same terms previously approved for the facility.

“Funds allocated to the Bitcoin Income Generation business will be used as collateral for selling Bitcoin options to earn premium income,” the firm stated in the filing.

The latest borrowing is structured as a floating-rate loan linked to US Dollar benchmarks and automatically renews each day. Metaplanet noted that the facility allows for repayment at any time, and each advance is backed by Bitcoin held on its balance sheet.

The company said the proceeds may be directed toward additional Bitcoin purchases, growth initiatives within its Bitcoin-based income business, or share buybacks, with final allocation dependent on prevailing market conditions.

Metaplanet says loan has little effect on 2025 performance

Metaplanet reportedly holds a stash of 30,823 BTC. It said the size of its holdings offers a substantial collateral cushion, even in periods of sharp market swings. The company also emphasized that all borrowings are made within conservative collateral thresholds set by management.

Looking forward, the firm stated that the loan is expected to have only a negligible effect on its financial results for the fiscal year ending December 2025.

Metaplanet also mentioned that it follows a conservative financing approach, drawing on its credit facility only when it can maintain a substantial collateral cushion, even in periods of heightened Bitcoin price volatility. The company noted that it has utilized a total of $230 million of the $500 million available under the facility.

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Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

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