Metaplanet sets up for new BTC purchases with $130M loan announcement

Metaplanet may become one of the larger playbook companies to continue the streak of buying BTC. The company announced renewed credit access, with a high probability of allocating more funds to buying BTC. 

Metaplanet may be able to buy more BTC after filing a disclosure for another loan facility. Until recently, Metaplanet extended its period of lowered online communication, ending the streak of buying BTC almost weekly. 

The Metaplanet announcement arrives after Strategy skipped its weekly BTC purchase, raising concerns about the viability of playbook companies. 

As of November 25, Metaplanet still held 30,823 BTC, with an average purchase price of $108,036. The company is one of the latest buyers, starting to buy at the top in November 2024. As BTC dipped below $90,000, Metaplanet is logging unrealized losses. 

Metaplanet to use a BTC-backed loan

The recent round of fundraising for $130M is changing the playbook for Metaplanet. The company will use its BTC as collateral for the loan. In the case of positive market developments, Metaplanet may repay the loan. 

In the case of a market downturn, Metaplanet may increase the loan collateral, as stipulated in its filing. 

“In general, when borrowing against Bitcoin collateral, a decline in the price of Bitcoin during the loan term may require additional collateral to be pledged. However, as of October 31, the Company holds 30,823 BTC (equivalent to approximately USD 3.5 billion). Given the substantial scale of Bitcoin holdings relative to the loan amount, the Company expects to maintain sufficient collateral headroom.”

The loan is a part of a $500M facility, of which Metaplanet has borrowed $230M to date, including the recent loan. The company closed the deal on November 21, not mentioning its creditor. 

Since that date, Metaplanet has not announced new BTC purchases. Previously, Metaplanet also announced its Mercury preferred stock with a 4.9% dividend, a tool bearing similarities to Strategy’s more aggressively marketed preferred shares. 

Metaplanet’s MTPLF shares sink to yearly lows

Metaplanet’s MTPLF shares continued to sink, following the general trend of treasury companies. 

MTPLF traded at $2.36, down over 72% in the past six months. For 2025, MTPLF retains a small gain of around 5%. As the shares turned lower, Metaplanet canceled its options to sell more common stock. The company can still use MTPLF, but may have to proceed with caution. 

As of November 26, MTPLF trades at a $2.66B market capitalization, exactly the price of Metaplanet’s entire treasury. 

The stock slide caused a general increase in short open interest, betting on a further crash. Large bank entities are also shorting as much as 15% of the MTPLF supply, based on recent reports. Increasing short interest may signal a lack of confidence, but also spark a risky short-term rally to cause a short squeeze. 

Metaplanet is seen as the target of an attack, as the market has lost confidence in DAT companies, leading to deliberate attempts at short-selling.

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