Bitcoin News Today: Metaplanet Borrows $130M to Buy Bitcoin, Defying Downturn to Chase 1% Supply Target

Metaplanet, the Japanese digital asset treasury firm, has secured a $130 million loan to further its aggressive Bitcoin accumulation strategy, signaling continued confidence in the cryptocurrency despite a broader market downturn. The loan, drawn from a $500 million credit facility using Bitcoin as collateral, brings the company's total drawn funds to $230 million, with proceeds earmarked for additional BTC purchases, income-generation initiatives, and potential share buybacks. The move follows a 2% surge in Metaplanet's stock price, outpacing the Nikkei 225's 1% rise, as investors reacted positively to the firm's expanded Bitcoin treasury ambitions.

The loan terms include a floating interest rate tied to a U.S. dollar benchmark, with daily renewals and the option for early repayment. Metaplanet emphasized that its Bitcoin reserves-currently valued at $2.7 billion-provide ample collateral to withstand price volatility, even as the asset trades at a 20% unrealized loss against its average purchase price of $108,036. The company's strategy mirrors that of Strategy (formerly MicroStrategy), which has leveraged debt and equity to scale its Bitcoin holdings. Metaplanet aims to control 210,000 BTC, or 1% of the total supply, by 2027.

The decision to borrow against Bitcoin comes amid a broader slump in crypto prices, with Bitcoin down 31% from its October peak of $126,080 and trading near $87,500. While critics highlight the risks of companies holding volatile assets, Metaplanet's leadership remains bullish, citing long-term price appreciation and the potential to generate income through options trading. The firm also announced a parallel $135 million capital raise via perpetual preferred shares, offering fixed payouts and conversion rights to further fund its Bitcoin strategy.

Industry observers note that Metaplanet's approach reflects a growing trend among Japanese firms to embrace crypto adoption. Earlier this month, six major asset managers signaled plans to launch retail and institutional crypto funds, while regulators explored allowing crypto inclusion in mutual funds. However, the sector faces challenges, as many digital asset treasuries have seen their stock prices underperform their underlying holdings, raising questions about sustainability.

Despite the risks, Metaplanet's leadership, including Bitcoin strategy director Dylan LeClair, has reiterated its commitment to a "HODL" strategy, buying dips in the market to expand its BTC reserves. Community members have speculated that the recent loan coincided with Bitcoin's drop to $82,000, suggesting a strategic purchase opportunity.

The firm's actions underscore the ongoing debate between short-term market volatility and long-term faith in Bitcoin's value proposition.