Metaplanet Inc. (MTPLF) is leaning into its Bitcoin bet with borrowed money. The Japanese company announced on November 21 that it secured another $130 million loan backed by its Bitcoin (BTC) holdings, pushing total borrowings to $230 million under a previously approved $500 million credit line.

The playbook here is straightforward: borrow against the crypto you own, use that cash to buy more crypto, generate income through options strategies, and maybe throw in some share buybacks for good measure. It's aggressive treasury management in an asset class that doesn't exactly do stability.

Another Draw on the Bitcoin Credit Line

This latest loan follows an earlier $100 million drawdown from the same facility. The lender's identity remains undisclosed at their request, which isn't unusual for these types of arrangements. What we do know is that the debt carries a floating U.S. dollar benchmark rate and renews automatically each day. Metaplanet can repay whenever it wants, and everything is secured by Bitcoin sitting on its balance sheet.

That balance sheet currently shows 30,823 BTC, worth roughly $2.7 billion at current market prices. Against $230 million in borrowings, that's substantial collateral coverage. But here's the rub: Bitcoin moves. A lot. The company acknowledged that price volatility could trigger margin calls requiring additional collateral, though it insists its financial policy maintains buffers even during sharp market swings.

Where the Money Goes

Metaplanet plans to deploy the fresh capital across three buckets. First, more Bitcoin purchases — continuing the accumulation strategy that defines these treasury companies. Second, expanding its income-generation division, which involves using Bitcoin as collateral to sell options and collect premium revenue. Third, potential share repurchases, presumably to address the valuation discount we'll get to shortly.

The company doesn't expect material financial impact for the fiscal year ending December 2025 but promised to disclose any significant developments as they happen.

The Treasury Company Dilemma

Metaplanet now ranks as the fourth-largest publicly listed Bitcoin treasury company, trailing Strategy Inc. (MSTR), MARA Holdings Inc. (MARA), and Twenty One. Being in that cohort comes with a specific set of challenges, and right now those challenges are showing up in the stock price.

The shares have collapsed 81% since June. According to The Block, the market-cap-to-net-asset-value ratio sits near 0.81, meaning investors are valuing the company below the current worth of its Bitcoin holdings. That's a discount to NAV, and it reflects skepticism about the strategy or concerns about execution risk.

The numbers get rougher when you look at cost basis. Metaplanet's average purchase price for its Bitcoin stack works out to roughly $3.3 billion. With current market value around $2.7 billion, that's an unrealized loss of about $600 million. Paper losses, yes, but they matter when you're borrowing against volatile collateral.

Technical Picture Shows Continued Weakness

The chart tells a story of persistent downward pressure. Metaplanet currently trades near $2.31, firmly inside a downtrend channel that's been in place since June. Every attempt at recovery has resulted in a lower high, and every dip has set a lower low.

On the daily timeframe, the stock sits below every major exponential moving average: the 20-day at $2.57, the 50-day at $3.34, the 100-day at $4.30, and the 200-day at $4.32. They're stacked in perfect bearish order, which technical traders interpret as entrenched negative momentum. The Parabolic SAR indicator also remains above price, another bearish signal suggesting the trend hasn't reversed.

Zooming into the intraday action, there's been a modest bounce from support around $2.18 that lifted the Relative Strength Index toward 56, indicating some short-term buying interest. But that move hasn't broken the key descending trendline sitting near $2.39, which aligns with the upper Bollinger Band. That level represents the first meaningful resistance for any recovery attempt.

Without a clean break above $2.39, the technical setup remains fragile. A failed breakout would likely send the stock back toward $2.18 support, with $2.00 marking the lower boundary of the channel. Only a decisive close above $2.39 would signal that selling pressure is finally easing.

The Bitcoin Treasury Bet Under Pressure

What Metaplanet is doing isn't unique — it's following the playbook established by larger peers in the Bitcoin treasury space. Borrow cheap, buy Bitcoin, ride the appreciation, generate income from derivatives, repeat. When Bitcoin climbs, the strategy looks brilliant. When it consolidates or drops, the leverage cuts both ways.

Right now, the market is pricing in considerable skepticism. The 81% drawdown in shares, the discount to NAV, and the unrealized losses all point to investors questioning whether this approach creates value beyond simply holding Bitcoin directly. The fresh $130 million loan signals management's confidence that doubling down makes sense, but the stock's technical breakdown suggests the market isn't convinced yet.

The company has plenty of collateral cushion at current Bitcoin prices, and the daily renewal structure on the debt provides flexibility. But with Bitcoin's volatility and the stock stuck in a clear downtrend, the next few quarters will test whether this aggressive treasury strategy can work its way out of the hole or whether the pressure continues building.