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Metaplanet Draws First $100 Million From Bitcoin-Collateralized Credit Line to Resume Purchases

Metaplanet is turning to Bitcoin-backed credit to fund growth when issuing new stock would be dilutive.

Overview

  • Executed on October 31 and disclosed to investors this week, the borrowing is the first draw from a $500 million facility the company set up in late October.
  • The cash will fund additional Bitcoin purchases, expansion of its cash-collateralized options business, and potential buybacks under a ¥75 billion authorization after its mNAV fell below 1.0 in October.
  • The lender is undisclosed; the loan renews daily, has no fixed maturity, can be repaid at the company’s discretion, and carries a floating rate tied to a U.S. dollar benchmark plus a spread.
  • Metaplanet posted approximately 30,823 BTC as collateral, saying the $100 million draw is roughly 3% of its holdings and asserting “sufficient collateral coverage” under a conservative leverage policy.
  • The Bitcoin Income unit, which sells cash-secured options, generated ¥24.4 billion (~$160 million) in Q3 revenue, up 3.5x year over year, as the company maintains a goal of 210,000 BTC by 2027.