Metaplanet took a loan of 100 million dollars for Bitcoin.

Japan-based Metaplanet secured a loan worth 100 million dollars by using its existing Bitcoin (BTC) assets as collateral. This move indicates that Metaplanet plans to purchase more Bitcoin. The company, listed on the Tokyo Stock Exchange, announced on October 31 that it had utilized the approved credit limit to execute this borrowing.

The company stated that a portion of the loan was collateralized by its reserve of 30,823 Bitcoin. This reserve, valued at approximately 3.2 billion dollars, was only a small part used as credit collateral. The loan carries a variable interest rate based on U.S. dollars and includes an option for early repayment if desired. Metaplanet announced that it would use this financing for new Bitcoin purchases and as part of its 'Bitcoin Revenue Generation Program.'

This program aims to generate additional income by using the company's Bitcoin as collateral for options trading. Furthermore, it indicated that it might allocate a portion of these funds for stock buybacks, depending on market conditions. Metaplanet has set a target of 210,000 Bitcoin by 2027, planning to hold 1% of the total supply.

The average cost of the Bitcoin held by the company is around 108,036 dollars. Bitcoin's price has been hovering around 103,000 dollars in recent times, representing an approximate 4.4% decline in the company's position. Nevertheless, Metaplanet continues to pursue this aggressive strategy to increase its Bitcoin holdings. Currently, it possesses the fourth-largest publicly traded Bitcoin treasury in the world, following only Strategy, MARA Holdings, and Jack Mallers' XXI company.

Although Metaplanet's shares have risen by 30% since the beginning of the year, they have decreased by 81% since the peak of 15.30 dollars seen in May, now trading at 2.79 dollars. Last month, the company also established a new credit line worth 500 million dollars and announced that it would use these funds for a stock buyback program. This move has successfully brought the company’s market value/net asset ratio (NAV) back to 1.03.

Metaplanet emphasizes that it will continue to adhere to a 'prudent financial management policy' to avoid excessive debt. In this context, it's crucial for investors to closely monitor Metaplanet's Bitcoin strategies and market conditions.