Here’s a bold statement: Bitcoin-backed loans are reshaping the financial landscape, and one company is leading the charge in a way that’s both innovative and controversial. Metaplanet, a Tokyo-listed Bitcoin treasury firm, has just secured a staggering $100 million loan using its Bitcoin holdings as collateral—and it’s not just sitting on the cash. The company plans to use these funds to buy even more Bitcoin and repurchase its shares, a move that’s raising eyebrows across the industry. But here’s where it gets controversial: Is this a brilliant strategy to double down on Bitcoin’s potential, or a risky gamble that could backfire if the market takes a turn? Let’s dive in.
According to a recent filing, Metaplanet borrowed the funds on October 31 under a credit agreement that allows it to use its Bitcoin (BTC) holdings as collateral. While the lender’s identity remains undisclosed, the loan comes with a benchmark U.S. dollar rate plus a spread, and the company can repay it at any time. Metaplanet insists the loan structure is conservative, pointing to its massive Bitcoin stash of 30,823 BTC—worth approximately $3.5 billion as of late October. This substantial position, they argue, ensures healthy collateral coverage even if Bitcoin’s price were to plummet. But this is the part most people miss: the company’s strategy hinges on Bitcoin’s continued growth, a bet that not everyone is willing to make.
The funds from this loan aren’t just for Bitcoin purchases; they’ll also support Metaplanet’s Bitcoin income business, where holdings are used to earn option premiums, and share repurchases, depending on market conditions. Speaking of share repurchases, just days before securing this loan, Metaplanet announced a 75 billion yen ($500 million) share buyback program—also backed by Bitcoin-collateralized financing. The goal? To restore investor confidence after the company’s market-based net asset value (mNAV) dipped below 1.0. Metaplanet’s mNAV, a ratio of the company’s value to its Bitcoin holdings, briefly fell to 0.88 last month before rebounding. During this dip, the company paused new Bitcoin purchases but reaffirmed its ambitious goal of acquiring 210,000 BTC by 2027. Bold move or overreach? The jury’s still out.
Metaplanet expects the $100 million loan to have minimal impact on its 2025 fiscal results but promises to disclose any material changes if they arise. Meanwhile, the crypto treasury model is facing growing scrutiny. Last week, S&P Global Ratings issued a ‘B-’ speculative-grade rating to Michael Saylor’s Bitcoin treasury company, Strategy, citing its heavy Bitcoin concentration, limited liquidity, and narrow business focus as key weaknesses. This rating comes as critics question the sustainability of the crypto treasury model, with 10x Research revealing that some Bitcoin treasury firms have seen their NAVs collapse, erasing billions in paper wealth.
The analysts argue that the boom in Bitcoin treasury companies—which issued shares at multiples of their actual BTC value—has ‘fully round-tripped,’ leaving retail investors with significant losses while firms accumulated real Bitcoin. But here’s the question we’re all thinking: Is this model a Ponzi scheme in disguise, or a legitimate strategy for long-term Bitcoin accumulation? Metaplanet’s moves certainly add fuel to the fire, and whether you see this as genius or folly, one thing’s clear: the crypto world is watching closely. What’s your take? Is Metaplanet’s strategy a masterstroke or a risky gamble? Let’s debate in the comments!
