Metaplanet Bets Big on Bitcoin With $500 Million Credit Facility and Share Buyback Plan
Metaplanet (3350.T) has unveiled a $500 million credit facility backed by Bitcoin, reinforcing its position as Japan’s leading Bitcoin treasury company.
The move marks another bold step in the firm’s capital strategy, as it continues executing a ¥75 billion ($500 million) share repurchase program aimed at enhancing shareholder value and optimizing balance sheet efficiency.
A Bitcoin-Backed Liquidity Boost
The Tokyo Stock Exchange–listed company confirmed that the newly established credit line allows it to borrow against its Bitcoin holdings, providing liquidity for future BTC acquisitions and broader capital allocation objectives.
The facility, approved through a board resolution, is part of Metaplanet’s transition toward treating Bitcoin as a strategic reserve asset rather than a speculative play.
Simon Gerovich, the company’s CEO, emphasized that the credit structure allows “flexible execution as part of the company’s capital allocation strategy,” suggesting that the firm intends to balance aggressive Bitcoin accumulation with disciplined financial management.
By using BTC as collateral instead of liquidating equity, Metaplanet seeks to enhance asset yield and avoid shareholder dilution—an approach that could serve as a model for other Bitcoin-focused public companies.
Market Reaction Reflects Optimism and Caution
Following the announcement, Metaplanet’s shares climbed 2.25% to close at JPY 499 on Oct. 28, signaling growing investor enthusiasm for the firm’s dual-track strategy of BTC-backed financing and buybacks. The market’s response reflects confidence in Metaplanet’s long-term Bitcoin thesis, even as short-term volatility remains a concern.
Metaplanet share price (Source: Google Finance)
However, analysts cautioned that Bitcoin’s price swings could directly impact the value of the collateral supporting the credit facility.
Should BTC decline sharply, the company could face tighter loan covenants or liquidity constraints, potentially dampening its flexibility.
Analysts Highlight Risks Behind the Strategy
Some market observers have raised questions about the sustainability and risk profile of Metaplanet’s financial maneuvers.
A crypto analyst described the company’s approach as “an interesting move” that mitigates downside risks compared to selling BTC outright for buybacks, but warned that the real challenge lies in managing collateral ratios and interest rate exposure during bear market conditions.
“Selling BTC to fund share buybacks would be straight dumb, pure death spiral,” the analyst said. “But using BTC as collateral for buybacks at least limits that risk—it’s a calculated leverage play.”
The same analyst added that Metaplanet’s ability to maintain its valuation premium will depend on disciplined liquidity management and sustained investor demand, both of which are vulnerable to shifts in Bitcoin’s macro environment.
A Bold Bet on Bitcoin as a Treasury Asset
Metaplanet’s strategy represents one of the most aggressive institutional experiments in Bitcoin-backed corporate finance outside the United States.
By combining traditional corporate tools—credit facilities and repurchases—with Bitcoin collateralization, the company is effectively transforming its balance sheet into a hybrid financial structure tied to the world’s leading digital asset.
Whether this innovation translates into long-term value or exposes new risks remains to be seen. But one thing is clear: Metaplanet is positioning itself at the forefront of Japan’s evolving digital asset landscape, betting big that Bitcoin can serve as both a hedge and a catalyst for shareholder growth.
