Important points
- Metaplanet drew $100 million from its $500 million Bitcoin-backed credit facility to purchase more BTC and buy back stock.
- The company’s Bitcoin revenue business grew 115% in the third quarter, generating $16 million in revenue.
- The company is strengthening its long-term Bitcoin accumulation strategy and aims to hold 210,000 BTC by 2027.
Tokyo-listed Bitcoin treasury firm Metaplanet has withdrawn $100 million from a newly created $500 million Bitcoin-backed loan facility in hopes of expanding its Bitcoin holdings, strengthening its revenue-generating business and potentially buying back shares.
The company confirmed that the transaction took place on October 31st, and details were made public on November 4th. The loan is collateralized by 30,823 BTC worth approximately $3.5 billion, representing just 3% of Metaplanet’s total BTC holdings.
The announcement emphasized this, stating that the company believes its Bitcoin stash is “much larger in size than the loan amount” and has “sufficient collateral.”
The borrowings have no set maturity, can be repaid at any time, and carry variable interest rates based on U.S. benchmarks. The lender was not disclosed but is said to be offering flexible daily renewal terms.
The company said the borrowed funds will primarily be used to purchase additional bitcoin, expand its bitcoin-earning business, and support part of its 75 billion yen ($500 million) stock buyback program.
Managing director Simon Gerovich said the move is aimed at “increasing capital efficiency and maximizing BTC yields” and emphasized that the company is focused on long-term value creation rather than short-term market fluctuations.
Metaplanet’s borrowing strategy comes amid increased market volatility and widespread weakness across the Bitcoin market.
Recently, the price of Bitcoin fell below $100,000, but has recovered slightly. Meanwhile, many other companies’ Bitcoin vaults are shrinking their accumulation.
Despite that downturn, Metaplanet is doubling down. The company, sometimes referred to as “Asian Strategy,” mirrors the approach of U.S. corporate Strategy, which puts Bitcoin at the center of its corporate identity and issues bonds and equity to expand its BTC holdings.
Metaplanet’s long-term goal is ambitious: to accumulate 210,000 BTC by 2027, which is approximately 1% of the total Bitcoin supply. The company has already surpassed the interim target of 30,000 BTC for 2025 ahead of schedule.
The company’s stock buyback plan is triggered when the market value falls below the value of its Bitcoin holdings. That happened last month when the company’s market-to-book ratio fell to 0.99, prompting management to take action.
Metaplanet aims to reduce the number of outstanding shares by buying back its own shares, effectively increasing the amount of Bitcoin it holds per share.
Analysts say the move could boost investor confidence at a time when many bitcoin-holding companies are trading at a deep discount to their asset values.
A portion of the loan proceeds will fund Metaplanet’s revenue business, which generates yield through cash-backed Bitcoin options. This involves selling options against your BTC holdings to earn a premium while maintaining full exposure to the digital asset.
The division has grown rapidly, generating 2.4 billion yen ($16 million) in revenue in the third quarter of 2025, up 115% from the previous quarter, according to company filings.
Management says its options strategy helps the company offset volatility and generate steady returns during market turbulence. This allows Metaplanet to earn stable income without having to part with their long-term Bitcoin assets.
Despite aggressively accumulating Bitcoin, Metaplanet claims to maintain a “low leverage and cautious approach.” The company only borrows within conservative limits to ensure it has sufficient collateral even if Bitcoin prices plummet.
The $100 million loan is the first drawdown from the company’s $500 million credit facility announced in late October. This structure gives Metaplanet the flexibility to leverage more capital in the future if needed.
Management said this borrowing is expected to have a minimal impact on its fiscal 2025 results, but committed to promptly disclosing any material changes.
While Metaplanet is moving forward, many other companies’ Bitcoin finances are slowing. According to recent data, the pace of Bitcoin accumulation by publicly traded companies slowed sharply in the second half of 2025.
From January to June, companies added a total of approximately 245,000 BTC to their balance sheets. That number dropped to 205,000 BTC in the second half of the year, but so far in Q4 it was just 28,000 BTC.