Tokyo listed-Metaplanet recently disclosed that it had executed a credit facility borrowing of $100 million, using part of its Bitcoin treasury as collateral. The company said that the funds procured through this facility will to be used for additional acquisition of Bitcoin.
Metaplanet’s most recent data shows that the company held approximately 30,823 BTC, with a value of about $3.33 billion. They have been aggressively building their Bitcoin treasury, which has grown from 399 BTC in Q3 2024 to 30,823 currently. The firm’s target is to accumulate 210,000 BTC or at least 1% of Bitcoin by 2027.
The borrowed funds will also be used in other income-generating initiatives such as option-selling or digital finance services. The company also notes that part of the facility may be used to repurchase its own shares and enhance shareholder value.
Borrowed against crypto holdings
Interestingly, the company states that a decline in Bitcoin’s price during the loan term may necessitate the posting of additional collateral. In the current deal, only a “minor fraction” of its BTC portfolio, reportedly ~3% was pledged as collateral for the $100 million facility.
A very few firms are beginning to use crypto assets as collateral. Metaplanet itself issued zero-interest bonds previously to fund BTC purchases. A few companies are moving from passive treasury accumulation to active leveraging of Bitcoin for financial services and corporate finance.