Major Bitcoin Holder Metaplanet Takes on $100M Loan to Buy More BTC Despite Deep Losses
The Japanese company Metaplanet, one of the largest corporate Bitcoin holders, has taken out a $100 million loan backed by its existing BTC reserves to purchase even more Bitcoin — a move that has sparked both fascination and alarm in the crypto community.
Stock Plunges 78% as Leverage Rises
Metaplanet’s stock has fallen by more than 78% from its all-time high, reflecting investor concerns over its aggressive Bitcoin strategy. The firm’s average entry price for BTC stands near $108,000 — well above current market levels — placing its holdings deeply underwater.
Despite that, the company has doubled down, using its Bitcoin as collateral to borrow another $100 million and reinvest in additional BTC.
The Risks of BTC-Backed Loans
History has shown that borrowing against Bitcoin can be a dangerous gamble. When prices fall, collateralized assets risk liquidation — forcing borrowers to sell BTC at steep losses.
Metaplanet’s move mirrors past examples of overleveraged companies that faced insolvency during market downturns. Analysts warn that if Bitcoin drops toward $90,000 or $80,000, even large corporate holders could face margin calls or forced liquidations.
Echoes of Past Leverage Cycles
This type of behavior has been seen in previous crypto bull markets, where companies and funds took on excessive debt to accumulate Bitcoin — only to face severe consequences when volatility struck.
The cycle often ends with liquidations, eroded investor confidence, and long recovery periods for both corporate players and the broader market.
A High-Stakes Bet on Bitcoin’s Future
Supporters argue that Metaplanet’s decision represents a bold conviction play — an attempt to accumulate as much BTC as possible before the next potential leg up in the market. If Bitcoin returns to new all-time highs, the company’s high-risk leverage could yield massive returns.
However, with its stock already down 78% and balance sheet stress rising, many observers see this as a dangerous repeat of familiar crypto excesses.
For now, Metaplanet’s fate will depend on whether Bitcoin’s next move is up — or down.
