Bitcoin News: MetaPlanet Secures $100 Million BTC-Backed Loan, Bolstering Expansion Strategy

Japanese firm MetaPlanet has secured a $100 million BTC-backed loan. This move funds further BTC acquisition and key business expansion.

Japanese investment firm MetaPlanet has secured a substantial loan. The company announced the $100 million borrowing on October 31st. This type of financing uses their existing holdings of Bitcoin (BTC) as collateral. Therefore, the transaction bolsters the firm’s strategic crypto-minded treasury strategy. Consequently, MetaPlanet is now set for major corporate growth.

Financing Fuels Major Bitcoin Acquisition Drive

In fact, the amount of debt borrowed by the firm was around the order of Y15.3 billion. They used their significant reserves of digital assets as a source of this capital. Indeed, MetaPlanet had a total of 30,823 BTC as of the latest reporting date. This holding was valued at around y540 billion. As such, the $100 million loan is a small three percent of its total holdings.

Related Reading: BTC News: Metaplanet Goes All-In on Bitcoin with $500M Credit Line | Live Bitcoin News

In addition, the management team plans to use the funds for a number of purposes. The main purpose is to get even more Bitcoin. In addition, the capital will ensure the expansion of their income-generating business. Also, the potential for a share buyback was mentioned in MetaPlanet. The loan is part of a larger $500 m borrowing capacity.

Specifically, the income business is about generating stable income. This is accomplished by the creation and sale of cash-secured Bitcoin options. Therefore, this strategy provides for downside protection in times of market dips. Moreover, the premium income so received helps to cover some of the price risk. In this way, MetaPlanet ensures profitability and volatility management.

This important revenue stream demonstrates an amazing growth pattern. Sales for this segment are expected to reach a value of 2.44 billion yen. That estimate is for the third quarter of 2025. However, this projection is a large increase of 3.5-fold. It represents a sharp increase from the amount reported during the previous year of $690 million. Thus, the company is laying a strong financial base.

Furthermore, the company is considering a share buyback program. This action is dependent on the prevailing market conditions. Indeed, this move fits in the part of the price range of the limit of buyback of shares of yen 75 billion. Nevertheless, the company emphasizes a low-leverage, careful approach. They only borrow to keep adequate collateral margins regularly.

MetaPlanet Targets 210,000 BTC by 2027, Echoing MicroStrategy’s Approach

The strategy of MetaPlanet is similar to MicroStrategy. The US firm is the largest corporate owner of BTC in the world. Similarly, they both use debt and equity financing. This common practice helps them accumulate Bitcoin reserves. Yet, important differences exist in the overall operational model of both. Hence, there is a slight difference in their approaches.

For example, MetaPlanet has made innovative financial instruments. These products include BTC-backed perpetual preferred equity. On the other hand, MicroStrategy doesn’t currently use such products. In addition, MetaPlanet works under a unique regulatory environment in Japan. MicroStrategy, by contrast, is located in the United States only.

Significantly, there is also a divergence point in risk management. MetaPlanet aggressively works on the volatility of Bitcoin for regular profits. This is in extreme contrast to MicroStrategy’s main emphasis on long-term accumulation. Finally, MetaPlanet’s long-term goal is still aggressive. They want to have 210,000 BTC by the end of 2027.

The open-ended loan arrangement provides for flexible repayment terms. In that sense, MetaPlanet has all the freedom in its financial timeline. In conclusion, the company is developing a model of growth that is very balanced. This model combines aggressive Bitcoin expansion and initiatives with shareholders. It is a combination of flexibility of capital and disciplined strategy.

Source: https://www.livebitcoinnews.com/bitcoin-news-metaplanet-secures-100-million-btc-backed-loan-bolstering-expansion-strategy/