Metaplanet's Bitcoin Treasury Secures $130M in New Debt Despite 20% Unrealized Loss

Metaplanet's Loan and Bitcoin Strategy: Metaplanet has drawn $130 million from its Bitcoin-backed credit facility to expand its BTC holdings, despite facing a nearly 20% unrealized loss. The company employs a dual funding approach, combining collateralized debt and preferred equity to scale its Bitcoin treasury.

Market Performance and Stock Value: Metaplanet's stock has dropped significantly, closing at $2.28, down 81.5% from its 52-week high. The company's aggressive accumulation strategy continues even as Bitcoin trades below its average acquisition cost.

Income Generation and Risk Management: The funds from the loan are aimed at acquiring more Bitcoin, expanding an income program through options premiums, and potential share repurchases. Metaplanet maintains a conservative draw policy to manage collateral risks amid market volatility.

Long-term Outlook and HODL Strategy: Despite substantial unrealized losses, Metaplanet remains committed to its HODL strategy, with plans to increase its Bitcoin holdings to 10,000 by year-end and 21,000 by 2026, reflecting confidence in Bitcoin's long-term value.