**Metaplanet Secures $100 Million Bitcoin-Backed Loan to Fund BTC Purchases and Share Buybacks**
Tokyo-based Bitcoin treasury company Metaplanet has announced that it will secure a $100 million Bitcoin-backed loan to facilitate new Bitcoin (BTC) purchases and share buybacks.
This strategic move follows the recent launch of Metaplanet’s $500 million Bitcoin-backed share buyback program. According to the company’s official statement, the $100 million in short-term financing was raised under a loan agreement, using Metaplanet’s Bitcoin holdings as collateral. While the loan provider was not disclosed, the company noted that the loan carries a margin on the US dollar-based interest rate and can be repaid at any time.
Metaplanet emphasized a “conservative” credit structure, indicating that it currently holds 30,823 BTC. As of the end of October, these holdings were valued at approximately $3.5 billion. Despite market volatility and potential declines in Bitcoin prices, Metaplanet asserted that its collateral ratio remains strong.
The funds raised from the loan will be used for several purposes:
– Additional Bitcoin acquisitions
– Supporting Metaplanet’s Bitcoin income business line, which generates option income
– Share buybacks
Metaplanet’s recent financing initiative aims to bolster investor confidence, especially after its market capitalization to Bitcoin holdings ratio (mNAV) dropped below 1.0. The company reiterated its commitment to maintaining a target of 210,000 BTC by 2027.
*Disclaimer: This article is for informational purposes only and does not constitute investment advice.*
https://bitcoinethereumnews.com/bitcoin/japan-based-bitcoin-company-metaplanet-prepares-to-use-loans-to-buy-more-btc-here-are-the-details/