Metaplanet took a loan of 100 million dollars with Bitcoin.

Metaplanet Borrowed $100 Million with Bitcoin Assets

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

Financial Management Policy

On Tuesday, in a statement to its investors, Metaplanet indicated that it has revised its borrowing and Bitcoin accumulation strategies in consideration of the fluctuations in Bitcoin prices. The company stated, "Even if there are significant price declines in Bitcoin, we are adopting a careful financial management policy regarding the use of a loan that will maintain collateral sufficiency." Additionally, a commitment to "avoid excessive leverage" was emphasized.

Market Risks and Investor Concerns

Fluctuations in the cryptocurrency markets are increasing the risk of value loss for digital assets. The treasury strategy created by Strategy (MSTR) in 2020 had raised questions among investors. Moreover, 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 separated from its main hotel and technology business to begin Bitcoin purchases in 2024. The company currently holds approximately 30,823 BTC valued at around $3.2 billion and aims to acquire 210,000 Bitcoins, which is about 1% of the total supply, by 2027.

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