Tokyo-listed Metaplanet has recently executed a notable $100 million Bitcoin-backed borrowing, leveraging a substantial $500 million credit facility established just days prior. This move is aimed at facilitating additional crypto acquisitions, expanding the company’s options trading business, and possibly repurchasing shares. With the borrowing representing only 3% of Metaplanet’s considerable $3.5 billion Bitcoin reserve, the company maintains significant collateral buffers, even amidst volatile market conditions.
Management confirmed that the loan is structured with no fixed maturity date, allowing for repayment at any time. The proceeds from this borrowing are primarily intended to support Metaplanet’s ambitious long-term goal of accumulating a total of 210,000 Bitcoin by the end of 2027.
This strategic borrowing comes at a time when the digital asset treasury sector is under significant pressure. In September, around 25% of firms holding Bitcoin were trading below their crypto reserves. In response, Metaplanet has initiated a 75 billion yen share repurchase program, specifically designed to target periods when its enterprise value-to-Bitcoin holdings ratio drops below 1.0x. This initiative aims to reduce the share count and enhance the value of remaining shares.
Recent market conditions saw Metaplanet’s market-to-net-asset-value ratio fall to 0.99, positioning it as the first major Bitcoin treasury consistently trading at a discount while still pursuing an aggressive accumulation strategy that started in April. Representative Director Simon Gerovich described the repurchase initiative as a way to “enhance capital efficiency and maximize BTC yield” during times when valuation multiples compress.
However, broader trends have shown a significant decline in corporate Bitcoin adoption—dropping by 95% since July. Data from CryptoQuant indicates that only one company adopted treasury strategies in September, down from 21 in July. Additionally, industry-wide premiums have decreased from an average of 3.76x in April to 2.8x, while daily Bitcoin accumulation by treasury companies has slowed significantly.
Some of the borrowed funds will be allocated to Metaplanet’s Income Business, which focuses on creating and selling cash-secured Bitcoin options to generate premium income. According to projections, sales in this division are expected to reach 2.44 billion yen in the third quarter of 2025, reflecting a 3.5-fold increase from the previous year’s 690 million yen. This options strategy aims to provide the firm with a stable income during market highs and lows while also offering downside protection through collected premiums.
Metaplanet’s approach involves conservative financial management—borrowing only when its collateral capacity is strong enough to withstand significant price declines in Bitcoin. While the company anticipates minimal effects on its fiscal year 2025 financial results from the current borrowing, management has committed to keeping stakeholders updated if any notable changes occur.
The landscape of corporate Bitcoin strategies has entered a competitive phase marked by differentiation among companies, as highlighted by Coinbase Research. Experts note that the corporate crypto treasury environment is now more about strategy than guaranteed premiums. Columbia Business School professor Omid Malekan has even suggested that the current market represents a “mass extraction and exit event,” which has contributed to the ongoing market decline.
As Bitcoin dipped below the $100,000 mark for the first time since June, the cryptocurrency entered bear market territory, registering a 20% drop from its October record high and erasing over $1 trillion from the total crypto market capitalization. This downturn was exacerbated by a record $19 billion in liquidations linked to heightened market volatility following geopolitical tensions.
Despite these troubling market conditions, some companies continue to pursue aggressive accumulation strategies. For instance, a recent strategy netted 397 BTC for $45.6 million, raising total holdings to 641,205 BTC. Analysts, including Shawn Young of MEXC Research, suggest that ongoing accumulation, potential easing of trade tensions, and stable stock market performance could set the stage for a recovery in November.
