Tokyo-based Bitcoin treasury company Metaplanet announced that it will provide a $100 million Bitcoin-backed loan to facilitate both new BTC purchases and share buybacks.
Metaplanet to Use $100 Million Bitcoin-Backed Loan for BTC Purchase and Share Buyback
The company’s move comes on the heels of its recently launched $500 million Bitcoin-backed share buyback program.
According to the company’s official statement, Metaplanet provided short-term financing under the loan agreement using its Bitcoin holdings as collateral. The loan provider was not disclosed, but it was stated that the loan would carry a margin on the US dollar-based interest rate and be repayable at any time.
Metaplanet emphasized that its credit structure is “conservative,” stating that it holds 30,823 BTC. As of the end of October, these assets were valued at approximately $3.5 billion. The company stated that its collateral ratio remains strong despite potential declines in Bitcoin prices.
It was stated that the funds obtained from the loan will be used for additional Bitcoin purchases, Bitcoin income business line from which option income is generated and share buybacks.
Metaplanet’s financing step aims to restore investor confidence after its mNAV, which represents the ratio of market capitalization to Bitcoin holdings, fell below 1.0. The company reiterated that it will maintain its target of reaching 210,000 BTC by 2027.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/japan-based-bitcoin-company-metaplanet-prepares-to-use-loans-to-buy-more-btc-here-are-the-details/
