Metaplanet, a Tokyo-listed firm targeted on holding and rising its Bitcoin treasury, has secured a $100 million Bitcoin-backed mortgage to fund additional Bitcoin purchases and a serious share buyback program.
Mortgage construction and collateral
In response to a current submitting, Metaplanet borrowed the funds on October 31 below a credit score settlement that leverages its current Bitcoin holdings as collateral.
The lender’s identification stays undisclosed, however the mortgage is structured with a benchmark US greenback price plus a selection and gives versatile reimbursement phrases.
On the finish of October, Metaplanet reported holding 30,823 BTC, valued at roughly $3.5 billion, guaranteeing sturdy collateral even within the occasion of a Bitcoin worth decline.
For extra on Metaplanet’s present and historic Bitcoin reserves, see Metaplanet bitcoin treasury tracker.
Use of proceeds and buyback plan
The corporate acknowledged that proceeds from the brand new credit score line could also be allotted to extra Bitcoin purchases, its Bitcoin revenue enterprise (which earns choice premiums from holdings), and a share repurchase program, relying on market circumstances.
Days earlier than the brand new mortgage, Metaplanet introduced a 75 billion yen ($500 million) share buyback, additionally financed with Bitcoin-collateralized lending.
This transfer goals to spice up investor confidence after the agency’s market-based internet asset worth (mNAV) briefly fell under 1.0. Metaplanet paused new Bitcoin purchases through the dip however reaffirmed its aim of buying 210,000 BTC by 2027.
Threat outlook and disclosure
Metaplanet expects solely a minor monetary impression from the $100 million drawdown on its 2025 fiscal outcomes, with a pledge to replace buyers on any materials adjustments.