Overview
- The $130 million loan was executed on November 21 and disclosed November 25 under a $500 million credit facility secured by the firm’s bitcoin reserve.
- Proceeds are earmarked for additional BTC purchases, expansion of a Bitcoin Income Generation unit that sells options using BTC as collateral, and potential share buybacks depending on market conditions.
- Terms include a floating U.S. dollar benchmark rate, automatic daily renewal, repayment at the company’s discretion, and a lender kept confidential at the counterparty’s request.
- Metaplanet reports holding 30,823 BTC and says the reserve offers sufficient collateral headroom, though it did not disclose how much bitcoin was pledged for this loan.
- The move underscores growing BTC-backed corporate borrowing even as Metaplanet contends with significant unrealized losses on its holdings and pressure on its share price this year.