Metaplanet took a loan of 100 million dollars with Bitcoin.

Metaplanet Borrows $100 Million with Bitcoin Assets

Metaplanet, which is traded on the Tokyo Stock Exchange in Japan, has obtained a $100 million loan using its Bitcoin assets as collateral. This strategic move was stated to be aimed at acquiring more Bitcoin.

Financial Management Policy

In a statement to its investors on Tuesday, Metaplanet expressed that it has revised its borrowing and Bitcoin accumulation strategies in light of the fluctuations in Bitcoin prices. The company stated, "We are adopting a careful financial management policy regarding the use of credit, ensuring collateral adequacy even in the case of significant price drops in Bitcoin." Additionally, it emphasized its commitment to "avoiding excessive leverage."

Market Risks and Investor Concerns

Fluctuations in the cryptocurrency markets increase the risk of value loss for digital assets. The treasury strategy created by Strategy (MSTR) in 2020 raised questions among investors. Furthermore, on Tuesday, the French semiconductor company Sequans' sale of approximately $100 million worth of BTC from its treasury deepened investor concerns.

Metaplanet's Future Goals

Known as "Asia's Strategy," Metaplanet possesses the fourth-largest Bitcoin treasury and has separated from its main hotel and technology business to begin Bitcoin acquisitions in 2024. The company currently holds approximately $3.2 billion worth of 30,823 BTC and aims to purchase 210,000 Bitcoins by 2027, which would represent about 1% of the total supply.

This information is certainly not investment advice. We strongly recommend exercising caution in cryptocurrency investments.