Tuesday, 02 January 2024 12:17 GMT

Metaplanet Resumes Bitcoin Treasury Purchases After $100M Loan Boost


(MENAFN- Crypto Breaking) Japan's MetaPlanet has announced the resumption of its Bitcoin treasury purchases following a one-month pause. The company confirmed that it secured a $100 million loan backed by its existing Bitcoin reserves, enabling it to expand its digital asset holdings and invest in income-generating projects.

The company stated that the fresh capital would also support share buybacks, depending on market conditions. MetaPlanet emphasized that the loan represents only 3% of its total Bitcoin reserves, ensuring a healthy collateral buffer against market fluctuations.

Strengthening Financial Stability with Strategic Borrowing

The new borrowing forms part of MetaPlanet's $500 million credit facility, which was introduced on October 28. The firm noted that the credit line is open-ended and can be repaid at any time, providing flexibility in managing its financial obligations.

Management clarified that all future borrowing would remain within conservative collateral limits to safeguard long-term stability. The company's approach aligns with its broader strategy of maintaining strong financial control while pursuing digital asset accumulation.

A portion of the funding will go toward MetaPlanet's income business, which focuses on selling cash-collateralized coin options. This segment has generated steady revenue while allowing the firm to maintain exposure to Bitcoin.

Expanding Bitcoin Treasury and Future Targets

MetaPlanet currently holds 30,823 BTC valued at approximately $3.33 billion, ranking as the world's fourth-largest Bitcoin treasury. The company last purchased Bitcoin on October 1, acquiring 5,268 BTC at an average price of $116,870 each.

The firm's year-to-date performance has shown a strong 497% return on its Bitcoin investments. MetaPlanet's expanded capital base, supported by a $1.4 billion international share offering, reinforces its goal of accumulating 210,000 BTC by 2027.

Meanwhile, U.S.-based Hyperscale Data Inc. reported that its Bitcoin reserves have grown to $73.5 million, representing 61% of its market capitalization. Strategy also completed its routine Bitcoin purchase this week, adding 360 BTC worth about $45.6 million.

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