Metaplanet draws $130M BTC-backed loan for share buybacks, BTC purchases

Core Insights - Metaplanet executed a $130 million loan under its bitcoin-backed credit facility to fund additional bitcoin acquisitions and support potential share buybacks [1] - The total borrowings under the $500 million facility now amount to $230 million, with Metaplanet holding 30,823 BTC valued at $3.5 billion as of October 31 [2] - The loan's interest rate was not disclosed, and it is repayable at the company's discretion with terms that automatically renew daily [3] Financial Position - Metaplanet has "sufficient collateral headroom" to overcollateralize the loan in case of a decline in bitcoin's price [2] - The company did not disclose the amount of bitcoin used to collateralize the loan, but typical lending practices allow for 30-60% of the total value locked as collateral [4] Market Context - Bitcoin-backed loans are increasingly popular among bitcoin treasury companies due to slumping stock prices and tightened credit in the sector [5] - Metaplanet's recent capital actions include launching a U.S. subsidiary and adopting a Capital Allocation Policy for stock repurchases when shares trade below intrinsic value [6] Performance Metrics - As of November 25, Metaplanet's mNAV is at 0.96x, and the company is down 3% on the day [7]