Bitcoin News Today: Metaplanet Borrows $130M for Bitcoin, Defying 19% Unrealized Losses

Metaplanet, Japan's largest corporate Bitcoin holder, has drawn a $130 million loan from its $500 million Bitcoin-backed credit facility to accelerate its digital asset strategy. The Tokyo-listed firm, which now has total borrowings of $230 million against the facility, disclosed the move on November 21, emphasizing its confidence in maintaining sufficient collateral headroom despite market volatility. The loan, secured by 30,823 BTC valued at approximately $3.5 billion as of October 31, carries a floating interest rate tied to a U.S. dollar benchmark and renews daily, allowing the company flexibility to repay at any time according to financial reports.

The proceeds will be allocated to Bitcoin acquisitions, expansion of the company's Bitcoin income generation business-which includes selling options to capture premium revenue-and potential share repurchases according to analysis. This strategy mirrors that of U.S.-based MicroStrategy (MSTR), which has similarly leveraged debt to accumulate Bitcoin. However, Metaplanet's approach has faced scrutiny amid a 19.1% unrealized loss on its Bitcoin holdings, reflecting current market prices below its average acquisition cost of $108,070 per BTC according to market data. Despite this, management reiterated that its collateral cushions are conservative enough to withstand sharp price swings, with the $230 million in drawn loans representing a small fraction of its $3.5 billion BTC-backed reserves according to financial analysis.

The loan follows a $100 million draw in late October, signaling a resumption of aggressive Bitcoin accumulation after a brief pause. Metaplanet's shares rose 2.24% to 365 yen following the announcement, though they remain over 80% below June's record high. The company's stock has traded at a discount to its net asset value (NAV) since October, prompting a ¥75 billion share repurchase program aimed at aligning market value with its Bitcoin-backed treasury according to market analysis.

To diversify its funding sources, Metaplanet also launched a $135 million perpetual preferred share offering in November, providing long-term capital without diluting common equity. The dual-track strategy-combining short-term debt with equity instruments-enables the firm to scale its Bitcoin holdings while managing liquidity risks. This approach contrasts with MicroStrategy's recent challenges, where institutional investors have trimmed exposure amid fears of potential index delistings by MSCI according to financial reports.

Market conditions remain volatile, with Bitcoin trading near $87,000-a 24% decline from its October peak. Analysts warn that prolonged downturns could trigger margin calls for leveraged BTC holders, though Metaplanet's management expressed confidence in its collateral buffers. The firm's Bitcoin income program, which generated record option sales in Q3, adds a layer of revenue diversification as it navigates the current bearish environment according to industry reports.

Looking ahead, Metaplanet aims to acquire 210,000 BTC by 2027, requiring sustained purchases regardless of price fluctuations. The company's strategy hinges on Bitcoin's long-term appreciation outpacing debt servicing costs-a bet that has proven lucrative during past bull cycles but carries risks in extended downturns. With $270 million of its $500 million credit facility still available, Metaplanet's actions reflect broader trends in corporate adoption of Bitcoin as a treasury asset, even as market participants grapple with regulatory and macroeconomic uncertainties according to industry analysis.