Metaplanet (3350) said it drew a new $130 million loan from its Bitcoin-backed credit facility to fund new Bitcoin acquisitions, expansion of the Bitcoin income generation business and potential share repurchases.
The loan brings utilization of the $500 million facility to $230 million, the Tokyo-based company said Tuesday. The loan was executed on Nov. 21 and the lender was not disclosed at the counterparty’s request.
Interest on the loan is calculated by reference to a U.S. dollar interest rate plus a spread. The term renews automatically on a daily basis, and the funds can be repaid at the company’s discretion.
The borrowing is secured by the company’s bitcoin. As of Oct. 31, Metaplanet held 30,823 BTC valued at roughly $3.5 billion. The company noted that its bitcoin reserves are large enough to provide significant collateral headroom even during severe market volatility. Management reiterated that it draws only within conservative collateral buffers.
The income generation strategy includes using Bitcoin as collateral to sell options in order to capture premium revenue.
This announcement follows Metaplanet’s new perpetual preferred offerings, which added an additional long-term funding tool alongside its credit facility.
Metaplanet shares rose 2.24% to 365 yen. Still, they are more than 80% below June’s record high.