Metaplanet Borrows $100 Million Against Its Bitcoin Holdings—To Buy More BTC

Core Insights - Metaplanet, a Tokyo Stock Exchange-listed company, is acquiring more Bitcoin after securing a $100 million loan using its crypto as collateral [1] - The company is adopting a conservative financial management policy to maintain collateral adequacy even during significant Bitcoin price declines [2] - Metaplanet aims to acquire 210,000 Bitcoin by 2027, representing about 1% of the total supply, and currently holds 30,823 BTC valued at nearly $3.2 billion [5] Company Strategy - Metaplanet has pivoted from its core hotel and technology business to focus on Bitcoin accumulation starting in 2024 [5] - The company reassured investors of its commitment to avoiding excessive leverage in its borrowing strategy [2] - The firm is now the fourth largest Bitcoin treasury, following the strategy pioneered by MicroStrategy [5][6] Market Context - Bitcoin's price recently traded near $104,000, recovering from a drop below $100,000, and is currently about 18% below its all-time high of $126,080 [3] - The decline in Bitcoin prices has raised concerns among skeptics regarding the treasury strategy, with some companies like Sequans reducing their Bitcoin holdings [4] - There are over 200 publicly traded Bitcoin treasuries, with Metaplanet being one of the notable players in this space [6] Market Sentiment - A prediction market indicates that about two-thirds of respondents expect Bitcoin's price to rise to $115,000 rather than fall to $85,000 [7]