Key Takeaways

Metaplanet drew $100M from its $500M bitcoin-backed credit line to buy more BTC and repurchase shares.

Its bitcoin income business grew 115% in Q3, generating $16M in revenue.

The firm aims to hold 210,000 BTC by 2027, reinforcing its long-term bitcoin accumulation strategy.

Tokyo-listed bitcoin treasury firm Metaplanet Inc. has drawn $100 million from a newly established $500 million bitcoin-backed credit line, hoping to expand its bitcoin holdings, strengthen its income-generating business, and potentially repurchase shares.

The company confirmed the transaction took place on October 31, with details made public on November 4. The loan is secured by 30,823 BTC, worth around $3.5 billion, and represents just 3% of Metaplanet’s total BTC holdings.

The announcement highlights this, saying the company’s bitcoin stash “is significantly larger in scale than the loan amount,” and that it believes there is “sufficient collateral coverage.”

The borrowing has no fixed maturity date, allowing repayment at any time, and is tied to a variable interest rate based on U.S. benchmarks. The lender has not been disclosed but is said to have offered flexible daily renewal terms.

The company said the borrowed funds will primarily go toward buying more bitcoin, expanding its bitcoin income business, and supporting part of a ¥75 billion ($500 million) share repurchase program.

This move is designed to “enhance capital efficiency and maximize BTC yield,” said Representative Director Simon Gerovich, emphasizing the firm’s focus on long-term value creation rather than short-term market swings.

Metaplanet’s borrowing strategy comes at a time of heightened market volatility and broader weakness across the bitcoin markets.

Recently, bitcoin’s price slipped below $100,000 before rebounding back just over, while many other corporate bitcoin treasuries have scaled back their accumulation.

Despite that downturn, Metaplanet is doubling down. Often referred to as “Asia’s Strategy,” the company has made Bitcoin a central part of its corporate identity, mirroring the U.S. firm Strategy’s approach of issuing debt and equity to expand its BTC holdings.

Metaplanet’s long-term goal is ambitious: to accumulate 210,000 BTC by 2027, which would amount to roughly 1% of bitcoin’s total supply. It has already surpassed its 2025 interim target of 30,000 BTC ahead of schedule.

The company’s share repurchase plan is triggered when its market value falls below the value of its bitcoin holdings. That happened last month when its market-to-net-asset-value ratio slipped to 0.99, prompting management to act.

By buying back its own shares, Metaplanet aims to reduce the number of shares outstanding, effectively increasing the amount of bitcoin represented per share.

Analysts say the move could boost investor confidence at a time when many bitcoin-holding firms are trading at steep discounts to their asset values.

A portion of the loan proceeds will fund Metaplanet’s income business, which generates yield through cash-secured bitcoin options. This involves selling options against its BTC holdings to earn premiums while maintaining full exposure to the digital asset.

According to company filings, this segment has grown rapidly — producing ¥2.4 billion ($16 million) in revenue in the third quarter of 2025, a 115% increase compared to the previous quarter.

Metaplanet Bitcoin Income Generation table — Metaplanet on X

The options strategy, management says, helps the firm offset volatility and generate stable income during turbulent markets. It enables Metaplanet to generate steady income without having to part with its long-term bitcoin assets.

Even with its aggressive bitcoin accumulation, Metaplanet insists it maintains a “low-leverage, careful approach.” The firm borrows only within conservative limits to ensure adequate collateral coverage, even in the event of steep bitcoin price drops.

The $100 million loan represents the first drawdown from the company’s $500 million credit facility announced in late October. The structure gives Metaplanet flexibility to tap more funds in the future if needed.

Management stated that the borrowing is expected to have minimal impact on fiscal 2025 results, though it pledged to disclose any material changes promptly.

While Metaplanet pushes forward, many other corporate bitcoin treasuries are slowing down. According to recent data, the pace of bitcoin accumulation by public companies has dropped sharply in the second half of 2025.

Between January and June, corporations collectively added around 245,000 BTC to their balance sheets. That number fell to 205,000 BTC in the second half of the year — and just 28,000 BTC so far in the fourth quarter.

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Filed under: Altcoins - @ November 7, 2025 12:02 pm