Shares of Japanese investment firm Metaplanet advanced 2.24% to 365 yen today following the company’s announcement that it has fully secured a new $130 million credit line using its existing Bitcoin holdings as collateral. This substantial financial move comes during a period of significant volatility in cryptocurrency markets, representing a confident bet on digital assets.
Strategic Financing Amid Market Pressure
The timing of this decision is particularly noteworthy. Bitcoin currently trades well below Metaplanet’s estimated average acquisition price of approximately $108,000 per coin, presenting a paper loss on the company’s substantial holdings. Despite this challenging environment, management is increasing its exposure to the digital currency, signaling strong conviction in Bitcoin’s long-term recovery prospects.
Metaplanet confirmed it has drawn down $130 million from a total credit facility of $500 million. The company’s significant Bitcoin treasury, currently standing at 30,823 BTC, serves as security for this financing arrangement.
Three-Pronged Approach to Capital Deployment
The newly acquired capital will be deployed according to a clearly defined strategic framework:
• Additional Bitcoin acquisitions to expand the company’s digital asset portfolio
• Expansion of Bitcoin-based yield generation activities
• Strategic share repurchases when market conditions are favorable
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This financing complements the “Mercury” initiative announced on November 21, through which Metaplanet aims to raise an additional ¥21.25 billion (approximately $135 million) from institutional investors via the issuance of Class B preferred shares.
Navigating Current Market Challenges
Today’s share price appreciation marks a recovery from Friday’s sharp 7.75% decline. Market participants appear to be responding positively to Metaplanet’s demonstrated ability to unlock liquidity from its balance sheet without immediately resorting to equity dilution through new share issuance.
The company nevertheless faces real challenges in the current environment. With Bitcoin trading around the $80,000 level—significantly below the firm’s estimated cost basis—Metaplanet’s treasury position shows unrealized losses.
Long-Term Vision Remains Unchanged
Despite short-term market headwinds, Metaplanet continues to execute against its ambitious “555-Million-Plan,” which targets accumulation of 210,000 BTC by 2027. The company is systematically lowering its average acquisition cost through strategic purchases during periods of price weakness.
This corporate Bitcoin accumulation strategy draws parallels to other prominent corporate adopters, though Metaplanet distinguishes itself through structured financial products like “MARS” and “Mercury” that incorporate unique Japanese financial engineering elements. Most market analysts maintain an optimistic outlook, highlighting Metaplanet’s pioneering role in the Asian corporate Bitcoin sector.
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