Metaplanet Extends Bitcoin-Backed Borrowing With New $130M Draw 

Metaplanet has taken another major step in its ongoing effort to scale its Bitcoin ($BTC)-focused balance sheet. The Tokyo-listed digital asset firm disclosed that it has tapped an additional $130 million from its existing credit facility, bringing total borrowing under the arrangement to $230 million. 

The move is part of a broader plan to use debt, equity instruments and its significant Bitcoin reserves to secure capital without selling any BTC. The company executed the new loan on November 21, following terms similar to its earlier $100 million draw completed on October 31. 

According to the notice, the lender in both transactions remains unnamed at the counterparty’s request. The structure mirrors the firm’s previous borrowing approach: a floating interest rate based on U.S. dollar benchmarks, automatic daily renewals and full discretion for early repayment. The company emphasized that the setup allows it to control its liquidity needs while keeping its treasury strategy intact.

All borrowings are secured by Metaplanet’s Bitcoin holdings. The firm currently holds 30,823 BTC, which it valued at roughly $2.7 billion based on prevailing market prices. In a separate disclosure covering data as of October 31, the company estimated the same reserve at about $3.5 billion. These holdings, it noted, provide substantial collateral support relative to the amount drawn from the $500 million credit line.

Metaplanet acknowledged that its approach exposes the treasury to potential collateral calls if Bitcoin experiences a sharp decline. However, the firm said it has modeled its borrowing limits to account for large swings in the Bitcoin market. 

In a written comment, the company stated that it expects to maintain “sufficient collateral headroom” even if BTC experiences significant volatility. Executives reiterated that they draw only within strict collateral buffers to avoid liquidity stress.

With the latest $130 million draw, Metaplanet has now used nearly half of the available credit line. The firm views the facility as a way to unlock capital quickly while holding onto its BTC reserves, a model that has increasingly surfaced among companies aiming to preserve long-term exposure to Bitcoin.

The new capital is earmarked for three objectives: additional Bitcoin purchases, the expansion of the company’s BTC income-generation businesses and opportunistic share repurchases. In particular, Metaplanet aims to use part of the borrowed funds as collateral for selling Bitcoin options to generate premium revenue. The firm expects the financial impact of this loan on results for the fiscal year ending December 2025 to be minimal, but said any meaningful changes would be communicated as needed.

Despite strengthening its liquidity position, the company continues to face substantial market pressure. Its shares have fallen more than 80% since June, dropping sharply alongside the downturn in many Bitcoin-linked equities.

Market cap-to-NAV ratios across the sector have compressed, and Metaplanet is no exception. Its ratio currently sits near 0.81, reflecting a significant gap between the firm’s market value and the worth of its underlying assets.

The borrowing also comes at a time when Metaplanet’s Bitcoin holdings are substantially underwater. Based on estimates, the company acquired its BTC at a cost of around $3.3 billion. With Bitcoin now trading near the $87,000 range, its total position faces an unrealized loss of roughly $600 million, and nearly a 20% loss relative to its average purchase price of $108,036.

Still, the company remains committed to its long-term strategy. On X, Bitcoin strategy director, Dylan LeClair, said the firm is “HODLing,” emphasizing that the company has no plans to reduce its BTC position despite the unrealized losses.

Metaplanet ranks as the fourth-largest publicly traded Bitcoin treasury company, trailing only Michael Saylor’s Strategy, mining firm MARA and Tether-backed Twenty One. Its continued accumulation places it among the most aggressive corporate buyers in the market, even as Bitcoin trades significantly below the company’s cost basis.

Dual Funding Tracks: Bitcoin-Backed Loans and Preferred Shares

The latest borrowing highlights Metaplanet’s two-pronged strategy for capital access. On one side is its $500 million credit facility backed entirely by its Bitcoin. On the other is a separate long-term equity initiative designed to raise capital through Class B perpetual preferred share issuance.

The preferred shares give investors a fixed annual payout and include conversion options that allow holders to turn them into common stock under certain conditions. The shares can also be repurchased by the company, depending on the terms set out in their structure. Unlike the short-term nature of the credit facility, which renews daily and can be repaid at the company’s discretion, the preferred offering serves as a more permanent layer of capital.

This equity raise, expected to total around $135 million, represents a key pillar of Metaplanet’s broader “Mercury” initiative. The initiative is designed to expand the company’s reach in the Bitcoin ecosystem and support long-term treasury growth. Together, the credit line and preferred share plan represent a hybrid model that mixes debt and equity for maximum flexibility.

Both channels allow Metaplanet to maintain its Bitcoin-heavy balance sheet without having to sell BTC for liquidity. Executives say the combination is intended to sustain the company’s strategy even when market conditions challenge the value of its holdings. The preferred offering is particularly important as BTC continues to trade far below the company’s cost basis, creating a more difficult environment for equity issuance.

Still, Metaplanet believes the dual-track structure gives it more flexibility than relying on just one source of capital. The credit facility provides short-term liquidity for rapid BTC accumulation, while the equity offering provides durability in the firm’s capital structure.

Even amid volatility, Metaplanet maintains that Bitcoin is a strategic asset rather than a short-term investment. The company continues to build a balance sheet centered almost entirely around BTC. Management has stated that this approach is part of a long-term roadmap, even if it puts pressure on earnings in the near term.

Shares of the company saw a modest rebound following the loan announcement, rising 2.24% to 365 yen. However, that improvement stands in contrast to the stock’s broader downtrend, which saw an 81% collapse from June’s highs. Ahead of the increase, shares slid by about 7.75% on Friday, underlining the difficulty of pushing new funding initiatives during a period of depressed asset valuations.

A High-Conviction Strategy in a Tough Market Environment

The latest borrowing expands one of the largest Bitcoin-backed financing strategies adopted by a public company to date. The arrangement provides Metaplanet with immediate liquidity while allowing it to continue building its BTC position, even as prices sit well below the levels at which the firm acquired most of its holdings.

Bitcoin dipped into the $80,000 range over the weekend, intensifying the pressure on Metaplanet’s balance sheet. The company’s cost basis remains roughly $108,000 per BTC, which complicates both capital raising and market perception. Yet the company insists on staying the course, arguing that its BTC reserves are large enough to accommodate significant swings without triggering collateral stress.

Metaplanet is becoming part of a broader trend in the corporate crypto space. More firms are turning to Bitcoin-backed borrowing as a way to unlock liquidity without selling BTC. This structure preserves long-term upside while providing access to capital, a combination appealing to companies with strong conviction in Bitcoin’s future.

Still, the timing of Metaplanet’s funding efforts comes with challenges. The firm’s preferred share initiative depends on investor appetite during a period of suppressed prices. Dilution concerns may weigh more heavily when the underlying asset remains well below the company’s acquisition cost. However, management may see the downturn as an opportunity to lower its average cost basis if new funds allow for additional buying at lower prices.

The company is also expanding its Bitcoin income strategies. By selling options backed by BTC collateral, Metaplanet aims to earn premium revenue that may help cushion volatility. This income program supplements the firm’s broader treasury strategy and has become a key part of how it plans to generate additional returns on its holdings.

As the company increases its reliance on borrowed capital, all eyes are on whether this approach will serve as a blueprint for bold treasury management or emerge as a cautionary case for high-leverage Bitcoin strategies. For now, Metaplanet remains resolute. Its leadership continues to emphasize confidence in both its reserve size and its long-term vision.

The coming months will show how the company navigates ongoing price volatility and whether its heavy reliance on BTC-backed financing can withstand a market that remains far below its expectations. With $230 million already drawn and a significant amount of borrowing capacity still available, Metaplanet is pushing forward with one of the most aggressive Bitcoin treasury strategies in the public markets today.