Metaplanet took a loan of 100 million dollars for Bitcoin.

Japan-based Metaplanet has 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 as Metaplanet Inc., announced on October 31 that it had completed this borrowing by utilizing the approved credit limit.

The company stated that a portion of the loan is secured by its 30,823 Bitcoin reserve. This reserve, valued at approximately 3.2 billion dollars, used only a small part of its credit collateral. The loan carries a variable interest rate based on US dollars and offers an option for early repayment at any time. Metaplanet revealed that it would use this financing for new Bitcoin purchases and as part of its 'Bitcoin Income Generation Program.'

This program aims to generate additional income by using the company's Bitcoin as collateral for options trading. Additionally, depending on market conditions, it may allocate part of these funds for stock buybacks. Metaplanet has set a target of 210,000 Bitcoins by 2027, intending to own %1 of the total supply.

The average cost of Bitcoin held by the company is around 108,036 dollars. The Bitcoin price has been trading at approximately 103,000 dollars recently, leading to an approximate %4.4 decline in the company's position. Nevertheless, Metaplanet is continuing this aggressive strategy to increase its Bitcoin holdings. Currently, it has the fourth-largest publicly traded Bitcoin treasury in the world, with only Strategy, MARA Holdings, and Jack Mallers’ XXI remaining ahead.

Although Metaplanet's shares have increased by %30 year-to-date, they have decreased by %81 since reaching a peak of 15.30 dollars in May, now falling to 2.79 dollars. Last month, the company also established a new credit line valued at 500 million dollars and announced that it would use these funds in its stock buyback program. This step has helped the company to pull its market value/net asset ratio (NAV) back to 1.03.

Metaplanet emphasizes that it will continue to follow a 'cautious financial management policy' to avoid excessive indebtedness. In this context, it is essential for investors to closely monitor Metaplanet's Bitcoin strategies and market conditions.