Metaplanet plunges deep into the red

Metaplanet has fallen deeply underwater on its Bitcoin strategy, with its holdings now worth less than their purchase cost. The Japanese company has increasingly funded its Bitcoin accumulation through debt rather than equity, raising concerns about how long it can sustain the leveraged approach. The shift toward borrowing marks a change from its earlier reliance on capital raises and bond issues to finance purchases. Investors are watching whether Metaplanet can service its debt load if Bitcoin prices remain depressed, and whether further purchases will require additional borrowing or dilution.