- Metaplanet taps $50M loan to boost Bitcoin acquisitions and income strategy.
- Company holds 30,823 BTC valued over $2.82B, aligning enterprise value.
- Bitcoin rebound and MTPLF gains hint at renewed investor confidence.
Metaplanet Inc. has tapped its Bitcoin holdings to secure a $50 million loan under its credit facility, signaling a major step in its aggressive cryptocurrency strategy. The funds will primarily target additional Bitcoin acquisitions, expand the firm’s Bitcoin income generation operations, and potentially enable share repurchases.
Besides funding new acquisitions, Metaplanet aims to strengthen its Bitcoin income generation business. According to the firm, “Funds allocated to Bitcoin Income Generation business will be used as collateral for selling bitcoin options to earn premium income.” This approach allows the company to earn additional yield on its existing holdings, balancing risk amid market swings. Moreover, the firm’s strategic use of loans demonstrates confidence in its Bitcoin accumulation roadmap.
Bitcoin Holdings and Financial Position
Metaplanet currently holds 30,823 BTC, valued at over $2.82 billion. Consequently, the company’s enterprise value now aligns closely with its Bitcoin holdings, and its mNAV has rebounded to 1x. The firm has already drawn a total of $280 million under its $500 million credit facility, including a prior $130 million loan.
Metaplanet plans to continue using borrowed funds to purchase more Bitcoin, expand income-generating activities, and potentially buy back shares, reinforcing its position in the market.
Additionally, the company has achieved a remarkable 496.4% yield year-to-date through its aggressive Bitcoin strategy. However, the stock has faced pressure despite this performance, closing 0.76% lower at 392 JPY, and down 70% over the past six months.
Still, short-term gains appear promising, following a 15% Bitcoin rebound in one week. Meanwhile, MTPLF stock also shows recovery signs, rising 0.80% to $2.52, reflecting investor confidence and lower trading volume dynamics. Vanguard remains a significant shareholder, holding 27.2 million MTPLF shares valued at $69 million.
Market Outlook and Technical Insights
Market analysts remain cautious yet optimistic. Crypto commentator Brain2jene highlighted, “$BTC needs to close above $93,036 again in the near term for further upside. Intraday corrections are normal. $BTC will likely hit $100K+ by next week.” Hence, short-term price movements could fuel renewed investor activity, benefiting firms like Metaplanet leveraging Bitcoin for growth and income.
