The loan came shortly after Metaplanet launched a $500 million Bitcoin-backed share buyback program, after its market-based net asset value fell below 1.0.
Tokyo-listed Bitcoin treasury company Metaplanet secured a $100 million Bitcoin-backed loan to purchase additional BTC and repurchase its shares.
According to a Tuesday filing, the funds were borrowed on Oct. 31 under a credit agreement that allows the company to secure short-term financing using its Bitcoin (BTC) holdings as collateral. The lender’s identity was not disclosed, but the company said the loan carries a benchmark US dollar rate plus a spread and can be repaid at any time.
Metaplanet said that the loan structure is conservative, noting it holds 30,823 BTC, worth around $3.5 billion as of the end of October, a position large enough to maintain healthy collateral coverage even if Bitcoin’s price declines.
Read more
Source: https://cointelegraph.com/news/metaplanet-taps-100m-bitcoin-backed-loan-btc-purchases-share-buyback?utm_source=rss_feed&utm_medium=feed%3F_ts%3D1762399109692%26_dc%3D1762399109692&utm_campaign=rss_partner_inbound
