Metaplanet Borrowing Frenzy: $130 Million More for Bitcoin – But Wait, There’s More!

Ah, the sweet sound of another $130 million being pulled from the depths of Metaplanet’s Bitcoin-backed credit. The company’s latest attempt to fuel its ever-growing Bitcoin obsession and, as a cherry on top, keep its stock price from hitting rock bottom, is nothing short of an elaborate dance with destiny (and some very volatile assets). 🍿

Oh yes, this glorious new loan will surely help them buy more Bitcoin. More! More! And not just that-Metaplanet is expanding its income-generating business. And…wait for it… considering share buybacks too. What a time to be alive. 🚀

The Metaplanet Strategy: Borrow to Accumulate, Expand, and Maybe Repurchase Shares?

Metaplanet has tapped into its Bitcoin-backed credit facility once again for a thrilling $130 million. This brings the total borrowed to a nice, round $230 million. All this from a mere $500 million limit. Don’t worry though, they’ve got plans.

The loan, executed on November 21, remains shrouded in mystery. Who’s the lender? Well, they’d rather stay unnamed-classic. The structure, though, is out in the open. The loan renews daily, and guess what? You can pay it back whenever you like. Who needs schedules, right? 🤷‍♂️

Metaplanet’s latest loan: $130M under a $500M credit facility.

What are they doing with all this dough? A little bit of everything:

1. More Bitcoin buys

2. Expanding their income machine

3. Maybe, just maybe, repurchasing shares

– Ragnar (@RoaringRagnar)

The management insists that this fits their long-term “vision” of Bitcoin as their core asset. With Bitcoin as collateral, they’ve built a nice cushion to protect themselves from market chaos. Well, chaos might be one word for it. 😬

As of October 31, Metaplanet owned 30,823 BTC, worth around $3.5 billion. It seems they’ve got enough collateral to weather the storm-if the storm isn’t too catastrophic, of course. ⛈️

More Bitcoin, More Income, and Maybe Some Stock Buybacks?

Metaplanet’s new loan isn’t just about hoarding more Bitcoin, folks. The company has big plans. One of them involves using Bitcoin as collateral to sell options and rake in some premium revenue. Think of it as playing the markets without actually selling anything. Brilliant, right?

And as for stock buybacks, Metaplanet has been watching its stock slide since June. But after the loan announcement, shares climbed about 2%. Small victories, right? But let’s be real-they’re still way below their glory days. 🧐

The company didn’t give a clear timeline on the buybacks but hinted at keeping that option open. Oh, the suspense. ⏳

Related Reading: Metaplanet Raises $135 Million to Expand Bitcoin Holdings

Market Reaction: A Modest Surge, But Is It Enough?

Market watchers have noted that Metaplanet is all in on this Bitcoin-backed financing thing. Their strategy seems clear-let’s pile up the Bitcoin reserves, play with borrowed money, and hope for the best. The new loan is another step in their well-known game of “How Much Bitcoin Can We Borrow Before the Whole Thing Crashes?”

The loan’s daily renewal feature is pretty flexible. No long-term commitments-just easy come, easy go. This flexibility gives the company a little more control, which they seem to appreciate. Because who doesn’t love control in these unpredictable times? 🕴️

Metaplanet’s stock took a modest jump after the announcement, rising to 365 yen. A nice rebound, but still more than 80% below the June highs. Nothing to write home about, but hey, it’s better than a sharp dive. 📉