Metaplanet Lands $500M Bitcoin-Collateralized Credit Facility to Fuel Treasury Growth

Metaplanet secures a $500 million revolving credit line backed by its Bitcoin reserves, earmarked for share repurchases and enhanced capital efficiency.

• Shares climbed 4.05% on the news, signaling investor approval of the BTC-financed buyback plan.
• Analysts flag potential pitfalls tied to collateral haircuts and Bitcoin’s price swings.

Bitcoin as Collateral: A New Pillar in Corporate Treasury

Tokyo Stock Exchange-listed Metaplanet (3350.T) has locked in a $500 million credit facility that lets the company borrow against its Bitcoin stash. The board-approved line is designed to supply fresh liquidity for additional BTC purchases while advancing a broader capital-allocation framework.

The move marks a deliberate pivot: Bitcoin is no longer just a speculative bet but a core balance-sheet asset. By pledging BTC instead of issuing new shares, Metaplanet boosts its return on assets and sidesteps shareholder dilution. Simon Gerovich, a company spokesperson, described the facility as a tool for “nimble, strategic capital deployment.”

Market Pulse: Shares Jump, Caution Lingers

Metaplanet closed at ¥499 on October 28, a 2.25% gain from the prior session, after unveiling the credit line and buyback program. The rally reflects market enthusiasm for a strategy that pairs crypto collateral with equity-friendly repurchases.

Yet not everyone is cheering. Elevated valuation multiples and Bitcoin’s volatility keep some sidelined. A sharp BTC drawdown could shrink collateral coverage, triggering margin calls or tighter lending terms and squeezing liquidity.

(Sources: X)

Analyst Takes: Clever Tactic, Real Risks

Crypto commentators are split but intrigued. One observer called outright BTC sales to fund buybacks “a textbook death spiral,” while hailing the collateralized-loan approach as “smart risk containment.”

Key watchpoints, they argue, include:

• Collateral ratios and interest-rate spikes in a bearish BTC market.
• Sustaining share-price premiums amid fluctuating investor sentiment and liquidity needs.

Close oversight remains essential to prevent the strategy from backfiring under stress.