Japanese Bitcoin Financial Metaplanet, a Tokyo Stock Exchange-listed company, announced it will buy more Bitcoin after securing a $100 million loan secured by the cryptocurrency.
The company said in a notice to shareholders on Tuesday that it is adjusting its borrowing and BTC accumulation strategy to account for Bitcoin price fluctuations.
“We have adopted a conservative financial management policy that allows us to only extend loans to the extent that our collateral remains sufficiently strong even in the event of a significant drop in Bitcoin prices,” he reassured investors.
“We are committed to avoiding excessive leverage,” it added in the announcement.
Metaplanet stock was trading down 2% on Tuesday. Bitcoin has recently been trading around $104,000, recovering somewhat from Tuesday’s plunge when the price fell below $100,000 for the first time since June. Bitcoin prices have recently been trading around 18% below its all-time high of $126,080, set in October, according to data from CoinGecko.
The decline in the price of Bitcoin and other digital assets has highlighted the concerns of skeptics about the Treasury strategy pioneered by Strategy (formerly MicroStrategy) in 2020. On Tuesday, French semiconductor company Seconds received a write-off of approximately $100 million in BTC from the Treasury.
And analysts have highlighted a decline in Strategy’s net asset value multiple (mNAV), or the premium at which a company’s stock trades compared to its crypto holdings.
Metaplanet, dubbed “Asia’s MicroStrategy” and the fourth-largest Bitcoin vault, pivoted away from its core hotel and technology businesses and began purchasing Bitcoin in 2024, and currently holds 30,823 BTC worth approximately $3.2 billion. BTC price today. it is aim As part of its master plan, it plans to acquire 210,000 Bitcoins by 2027, about 1% of the total supply.
Treasury allows shareholders to gain exposure to assets without the risks associated with owning them directly.
Strategy is the largest corporate holder of digital coins, holding 641,205 BTC worth approximately 66.5 billion.
Currently, more than 200 Bitcoin government bonds are listed. According to Visit bitcointreasuries.net and other sites built around various altcoins to track trends. Ethereum and Solana.
former expert warned The dangers of companies buying virtual currencies and how it can happen inherently dangerous. Currently, as the prices of major digital coins and tokens are falling, the stock prices of many companies that have purchased digital assets are falling.
In Myriad prediction markets, approximately two out of three respondents expect Bitcoin’s next move to be at $115,000, not below $85,000. Myriad is a division of Dastan, the editorially independent company’s parent company. decryption.
