Metaplanet Taps $100M Bitcoin Loan for Buyback, BTC Buys

Tokyo-listed Bitcoin treasury company Metaplanet has secured a $100 million Bitcoin-backed loan to buy additional BTC and buy back its shares.

According to a Tuesday filingthe funds were borrowed on October 31 under a credit agreement that allows the company to secure short-term financing with its Bitcoin (BTC) holdings as collateral. The identity of the lender was not disclosed, but the company said the loan carries a reference rate of the US dollar plus a spread and can be repaid at any time.

Metaplanet said the loan structure is conservative, noting that it holds 30,823 BTC, worth about $3.5 billion at the end of October, a large enough position to maintain healthy collateral coverage even if the price of Bitcoin declines.

The company said the proceeds from the line of credit can be used for additional Bitcoin purchases, its Bitcoin income business, where shares are used to earn option awards and share recoveries depending on market conditions.

Related: Metaplanet expands Bitcoin strategy with new US and Japan units

Metaplanet announced a $500 million buyback program

The announcement comes days after Metaplanet filed a 75 billion yen ($500 million) share exchange programalso backed by Bitcoin collateralized financing, aimed at restoring investor confidence after the company’s net asset value (mNAV) fell below one.

Metaplanet’s mNAV briefly fell to 0.88 last month before rebounding above parity. The company temporarily paused new Bitcoin purchases during the dip, but said it remains committed to its goal of acquiring 210,000 BTC by 2027.

Metaplanet expects the financial impact of the $100 million levy on its 2025 fiscal results to be minor, but has committed to disclosing any material changes should they arise.

Related: Metaplanet Becomes 4th Largest Corporate Bitcoin Holder

S&P assigns a “B-” rating to Michael Saylor’s Strategy

Last week, S&P Global Ratings posted a speculative ‘B-‘ rating. to Michael Saylor’s Bitcoin treasure company, Strategy. The firm cited Strategy’s strong Bitcoin concentration, limited liquidity and narrow business focus as key weaknesses.

The rating comes amid growing criticism of the crypto-treasury model. In a recent report, 10x Research revealed that some Bitcoin treasure companies have saw their NAVs collapsewipe out billions of paper wealth.