Bitcoin News Today: "Metaplanet Borrows $130M Against $3.3B BTC to Double Down Amid $635M Losses"

Metaplanet, Japan's largest corporate Bitcoin holder, has secured a $130 million loan against its Bitcoin reserves to further expand its crypto holdings and bolster income-generating strategies, despite carrying $635 million in unrealized losses on its $3.3 billion BTC position according to financial reports. The Tokyo-listed firm executed the borrowing under a $500 million credit facility established in October 2025, with the loan secured by its 30,823 BTC holdings per company filings. The floating-rate loan, which renews daily and can be repaid at any time, will fund additional Bitcoin purchases, options trading to generate premium income, and potential share buybacks as reported by market sources.

The move underscores Metaplanet's aggressive Bitcoin-centric strategy, which mirrors high-profile corporate treasury models like Strategy in the U.S. By leveraging its BTC reserves as collateral, the company aims to amplify long-term exposure without liquidating holdings. Management emphasized that its 30,823 BTC reserves-valued at roughly $2.7 billion-provide "significant collateral headroom," ensuring the firm can withstand sharp price swings while maintaining conservative loan-to-value ratios as stated in management commentary. This approach aligns with broader trends in corporate Bitcoin finance, where firms increasingly use crypto-backed loans to scale balance sheets and avoid dilutive equity issuance according to industry analysis.

However, the strategy carries risks. Bitcoin's 20% decline from Metaplanet's average acquisition cost of $108,070 has left the firm's Bitcoin holdings trading at a 19% discount to their cost basis as reported in market analysis. The company's shares, down 81% since June, now trade at a 1% discount to its Bitcoin-backed net asset value, reflecting investor skepticism about its leveraged model per financial analysis. Critics warn that further BTC price drops could trigger margin calls or forced sales, though Metaplanet's management insists its collateral buffer remains robust.

To strengthen its capital structure, Metaplanet also launched a preferred share program, raising ¥21.2 billion ($135 million) through two classes of shares-"Mercury" and "Mars"-to limit dilution while securing additional funding as reported by financial sources. The Mercury shares, offering a 4.9% annual dividend, include conversion rights if the stock price triples, while Mars shares prioritize seniority over common equity according to company disclosures. These instruments follow a ¥75 billion share repurchase program approved in October, signaling the firm's commitment to aligning shareholder interests with its Bitcoin acquisition goals per market data.

Metaplanet's bold borrowing comes as corporate Bitcoin treasuries face sector-wide pressure. With 26 of 168 Bitcoin-holding companies trading below their crypto reserves, firms like Marathon Digital and Galaxy Digital have reported similar unrealized losses amid BTC's 40% drop from October highs according to market reports. Yet Metaplanet remains unfazed, having added 17,000 BTC in Q3 and targeting a total of 210,000 BTC by 2027 as confirmed by company statements. The company's income-generation model-selling Bitcoin options-hit record sales in Q3, highlighting its dual focus on capital appreciation and yield according to financial reports.

Analysts remain divided on the viability of leveraged Bitcoin treasury strategies. Proponents argue that Metaplanet's deep collateral coverage and flexible credit terms position it to weather volatility, while skeptics highlight the fragility of leveraged positions in a bear market. "The key variable is BTC's trajectory," one observer noted, emphasizing that Metaplanet's success hinges on Bitcoin's ability to stabilize and rebound as observed in market commentary.