Metaplanet Doubles Down: $130M Loan to Buy More BT Despite $643M Loss – Bold or Reckless?
Metaplanet, Japan’s largest company Bitcoin holder, secured a brand new $130 million mortgage to buy further BTC regardless of sitting on over $635 million in unrealized losses.
The firm disclosed the borrowing in a November 21 submitting underneath a beforehand established $500 million credit score facility introduced in late October.
The lender stays undisclosed on the counterparty’s request. According to the submitting, the mortgage carries a floating rate of interest, renews every day, and might be repaid at any time. It is absolutely secured by the corporate’s Bitcoin reserves.
Metaplanet presently holds 30,823 BTC, valued at roughly $2.7 billion, with a median acquisition price of $108,070 per BTC and a complete price foundation of $3.33 billion.
With Bitcoin buying and selling beneath that stage, Metaplanet has an unrealized lack of $635.97 million, or –19.1%, as of the latest treasury replace.
The agency emphasised that its collateral capability stays robust. As of October 31, its Bitcoin holdings totaled the equal of $3.5 billion, that means the mixed $230 million it has drawn from the credit score line represents a small share of its accessible backing.
The firm stated its borrowing technique maintains a “enough collateral buffer even in periods of robust Bitcoin worth volatility.”
According to the submitting, funds from the brand new mortgage can be directed towards accumulating further Bitcoin, increasing Metaplanet’s Bitcoin revenue era enterprise, and executing share repurchases when market circumstances enable.
The revenue enterprise, promoting bitcoin choices, reached document gross sales through the third quarter.
Supporters body the technique as a calculated guess on Bitcoin’s long-term power. The firm has positioned BTC as its monetary spine, utilizing it as a hedge towards Japan’s weakening yen and using a mannequin comparable to Strategy’s.
Critics, nonetheless, warn that leveraging a risky asset might set off pressured gross sales.
A pointy worth drop might set off margin calls and pressure liquidations, whereas Metaplanet’s inventory efficiency hasn’t persistently mirrored its rising BTC reserves, exhibiting investor skepticism.
Metaplanet’s mortgage comes because the Tokyo-listed agency restructures its capital base and seeks alternate options to issuing extra frequent fairness.
Last week, the company unveiled plans for two classes of preferred shares, identified internally as “Mars” and “Mercury,” designed to increase capital whereas limiting shareholder dilution.
Metaplanet approves the issuance of recent Class B shares through a third-party allotment.#Bitcoin #Metaplanethttps://t.co/p8fYF0FyZt
— Cryptonews.com (@cryptonews) November 20, 2025
The preliminary sale of 23.6 million Mercury shares raised ¥21.2 billion ($135 million), with a 4.9% annual dividend and non-obligatory conversion to frequent inventory if Metaplanet’s share worth triples from present ranges.
The Mars class provides a variable dividend and no conversion function, giving it larger seniority than frequent shares.
Metaplanet stated the popular share program is essential after its inventory started buying and selling beneath its Bitcoin reserves.
Its market-to-net-asset-value ratio sits at 0.99, a uncommon low cost that led to approval of a ¥75 billion share repurchase program. In October, Metaplanet grew to become the primary main Bitcoin-holding firm to consistently trade below its net asset value.
Metaplanet’s mNAV hits 0.99, buying and selling beneath $3.4B Bitcoin reserves as one in 4 treasury corporations are buying and selling at low cost, with company shopping for down 95% since July.#Metaplanet #Bitcoinhttps://t.co/1KgbHxWGf5
— Cryptonews.com (@cryptonews) October 14, 2025
The stress comes amid crypto market losses, with Bitcoin falling 10% in a single session and Ethereum and Solana additionally sliding.
Across the sector, 26 of 168 Bitcoin-holding companies now trade below the worth of their crypto reserves. Corporate accumulation has collapsed as nicely, dropping to 1,428 BTC in September, a 95% decline from July.
Rival firms are reporting similar stress, with main unrealized losses reported by Marathon, Bitmine, and Galaxy Digital.
Despite the market pressure, Metaplanet says it stays committed to its long-term purpose of buying 210,000 BTC by 2027, including 17,000 BTC in Q3, forward of its annual goal.
The agency additionally reported a ¥13.5 billion internet revenue for the quarter, supported by a rebound in Bitcoin costs after September.
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