MetaPlanet Secures $100M Bitcoin-Backed Loan to Buy More BTC

Core Insights - Metaplanet executed a $100 million Bitcoin-backed borrowing, utilizing a $500 million credit facility to fund crypto acquisitions, expand options trading, and potentially repurchase shares [1][2] - The borrowing represents only 3% of Metaplanet's $3.5 billion Bitcoin reserve, maintaining significant collateral buffers [1] - The company aims to accumulate 210,000 Bitcoin by the end of 2027 [2] Strategic Capital Deployment Amid Market Volatility - The borrowing strategy was implemented during a period of significant pressure in the digital asset treasury sector, with a quarter of Bitcoin-holding companies trading below their crypto reserves in September [3] - Metaplanet approved a 75 billion yen share repurchase program targeting times when its enterprise value-to-Bitcoin holdings ratio falls below 1.0x, aiming to reduce share count and increase token ownership per remaining share [4] - The company's market-to-net-asset-value ratio dropped to 0.99, making it the first major Bitcoin treasury to trade at a discount despite an aggressive accumulation strategy [4] Income Business Expansion Targets Stable Returns - A portion of the borrowed capital will fund Metaplanet's Income Business, which creates and sells cash-secured Bitcoin options to generate premium income [7] - Sales for this division are projected to reach 2.44 billion yen in Q3 2025, a 3.5-fold increase from the previous year's 690 million yen [7] - The options strategy allows the company to earn stable income during market volatility while providing downside protection through collected premiums [7] Industry Dynamics - Corporate Bitcoin adoption has declined by 95% since July, with only one company initiating treasury strategies in September compared to 21 in July [5] - Industry-wide premiums compressed from an average of 3.76x in April to 2.8x currently, while daily Bitcoin accumulation by treasury companies slowed to just 1,428 tokens in September [6]