Metaplanet took a loan of 100 million dollars with Bitcoin.

Metaplanet Borrows $100 Million Using Bitcoin Assets

Metaplanet, traded on the Tokyo Stock Exchange in Japan, has taken a loan of $100 million by using its Bitcoin assets as collateral. It is stated that this strategic move was made to enable the company to purchase more Bitcoin.

Financial Management Policy

In a statement made to its investors on Tuesday, Metaplanet expressed that they have revised their borrowing and Bitcoin accumulation strategies while considering the volatility in Bitcoin prices. The company stated, "We adopt a careful financial management policy regarding the use of credit that will maintain collateral sufficiency, even in the event of significant price declines in Bitcoin." They also emphasized, "We are determined to avoid excessive leverage."

Market Risks and Investor Concerns

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

Metaplanet's Future Goals

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

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