Bitcoin News Today: Metaplanet Elevates Bitcoin to Strategic Reserve in Corporate Finance

Metaplanet, Japan's largest corporate Bitcoin holder, has secured a $500 million credit facility backed by its Bitcoin treasury to enhance capital efficiency and expand its BTC holdings, according to a Beincrypto report. The move underscores the company's strategic pivot toward leveraging digital assets as a core component of its balance sheet while navigating a tightening regulatory landscape in Asia. The facility, approved by the Tokyo Stock Exchange-listed firm, allows Metaplanet to use its 30,823 BTC holdings—valued at $3.33 billion—as collateral for loans, enabling the company to fund further Bitcoin acquisitions without diluting equity.

The initiative aligns with Metaplanet's broader capital allocation strategy, which includes a concurrent ¥75 billion ($500 million) share repurchase program. By securing liquidity through Bitcoin-backed financing, the company aims to optimize its asset yield while mitigating equity dilution risks. Simon Gerovich, a company representative, emphasized that the credit line provides "flexible execution" for capital allocation, reflecting a shift from treating Bitcoin as a speculative asset to a strategic reserve.

Market reactions to the announcement were mixed. Metaplanet's shares closed at JPY 499 on October 28, up 2.25% from the prior session, signaling investor interest in the dual approach of BTC-backed financing and share buybacks. However, analysts caution that the strategy carries risks, particularly if Bitcoin prices decline, reducing the collateral's value and potentially tightening loan terms. One crypto analyst noted that while using BTC as collateral for buybacks is "an interesting move," it could lead to a "death spiral" if the company is forced to sell Bitcoin to maintain collateral ratios during a downturn.

The decision comes amid heightened regulatory scrutiny across Asia for companies adopting Bitcoin treasury models. Hong Kong Exchanges & Clearing recently rejected five firms seeking to pivot to digital-asset treasuries, while India's Bombay Stock Exchange denied a listing application for Jetking Infotrain, which planned to allocate 60% of raised funds to Bitcoin, according to a Yahoo Finance report. Australia's ASX has also barred listed companies from holding over 50% of assets in "cash-like" holdings, effectively blocking Bitcoin treasury strategies, according to a Yahoo Finance article. Despite these challenges, Metaplanet remains a key player in the region, holding more BTC than any other Asian corporation.

Globally, public companies now hold over 1.02 million BTC, valued at $110 billion, with Japan's Metaplanet and Michael Saylor's Strategy Inc.—which holds 640,418 BTC—leading the trend. However, critics argue that the lack of a "credible business case" for Bitcoin treasuries exposes firms to liquidity and governance risks, especially given the asset's volatility, the Yahoo Finance report added. Citi recently reiterated a "buy" rating for Strategy but warned of amplified shareholder losses during BTC price corrections, the same report said.

Metaplanet's move highlights the growing tension between corporate crypto adoption and regulatory caution. While the company's strategy may offer short-term liquidity benefits, long-term success hinges on maintaining investor confidence amid macroeconomic uncertainties and shifting exchange policies. As Asian markets grapple with balancing innovation and stability, Metaplanet's path could serve as a litmus test for the viability of Bitcoin treasuries in a regulated environment.