MetaPlanet Raises $100M to Resume Bitcoin Treasury Purchases After One Month Pause

Japan’s Metaplanet is set to re-start its Bitcoin treasury purchases after more than a month of hiatus. This follows an announcement that the firm had put up its portfolio as collateral to secure $100 million in funding.

MetaPlanet Secures $100M In New Funding

In the latest update, MetaPlanet announced plans to resume Bitcoin treasury expansion after securing a fresh $100 million loan against its crypto holdings. The company confirmed on October 31 that it had taken up the loan. This move is a significant return to its digital asset accumulation strategy following a one-month pause.

The money will be invested in buying more Bitcoin, income-generating projects, and share buybacks. The firm explained that the loan amount constitutes only 3% of its total reserves in Bitcoin. This would allow for a collateral buffer during price drawdowns.

Currently, MetaPlanet owns 30,823 BTC, worth $3.33 billion, the fourth-largest Bitcoin Treasury in the world. The company also shared that all borrowing will be kept within safe collateral margins so as not to slow down long-term stability.

A portion of the new capital will be used to fund MetaPlanet’s income business, which consists of creating and selling cash-collateralized coin options; the firm says this model has provided consistent revenue while still keeping exposure.

Besides this, the management of MetaPlanet showed interest in re-buying company shares on the basis of market conditions. Such a move comes in correspondence with an equity acquisition cap of 75 billion yen set at the end of October.

The recent borrowing falls within MetaPlanet’s credit facility worth $500 million announced on October 28. The company confirmed that the loan is open-ended and can be repaid at any time.

Bitcoin Treasury to Resume After One-Month Pause

This is the first purchase by the Japanese company in more than a month. MetaPlanet last bought on October 1, adding 5,268 BTC for $116,870 apiece. Its year-to-date performance now reflects a stellar 497% return on Bitcoin investments.

Building on its treasure chest, MetaPlanet concluded an international share offering that was more than twice as large as originally planned to raise $1.4 billion. This expanded capital base has allowed it to pursue its long-term goal of acquiring 210,000 BTC by 2027.

In other news, US-based Hyperscale Data Inc announced that its Bitcoin treasury has surged to $73.5 million. The company’s Bitcoin reserve is at 61% of its market capitalization. Strategy also made their regular purchase of Bitcoin on Monday. They added 360 BTC worth around $45.6 million.