Metaplanet Borrows $100 Million Against Its Bitcoin Holdings—To Buy More BTC

Metaplanet, a notable player in the cryptocurrency market and the world's fourth-largest holder of Bitcoin, has borrowed $100 million, using its Bitcoin holdings as collateral to acquire more of the cryptocurrency. The Tokyo Stock Exchange-listed firm stated its strategy will consider Bitcoin's price volatility and ensure loans are maintained within acceptable collateral limits, even during price declines. The announcement comes amid concerns regarding the fiscal strategies of companies holding significant crypto assets after notable price drops in the market. As part of its ambitious goals, Metaplanet aims to accumulate up to 210,000 Bitcoin, representing about 1% of the total supply, by 2027. Recently, the price of Bitcoin dropped below $100,000, a significant decline from its all-time high of $126,080 established in October. Additionally, some firms, such as Sequans, have started to reduce their Bitcoin treasury holdings, raising questions about the sustainability of corporate crypto accumulation strategies.

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