Metaplanet is going parabolic; Is the market bullish on Bitcoin Treasuries?

Metaplanet stock appeared on hedge funds’ radar following a 57% gain over the past week and a 163% gain on the monthly chart. The stock is currently trading at a yearly high of 933 JPY. However, Metaplanet stock has become the most shorted, with many analysts comparing it to the euphoric GME short of 2021. 

According to BitconTreasuries, an estimated 1,082,164 BTC ($110.8 billion) is currently held by publicly listed and private corporate treasuries, reaching a new all-time high of 5.5% of the current circulating supply. That’s four times more bitcoins on corporate balance sheets than three years ago, with Metaplanet amassing over 700% more coins across the same period, today reaching 7800 BTC($800 million).   

Metaplanet stock gains 57% in a week

Today, the Japanese firm made the most significant single Bitcoin acquisition, purchasing 1004 BTC. The purchase has already triggered BTC’s price to reach a new all-time high of $109,500, among other factors, with the firm’s stock rallying by 57% over the last week. The latest purchase follows the May 7th purchase of 555 BTC. Analysts describe the Japanese firm as a “serial Bitcoin buyer,” following the footsteps of Microstrategy and BlackRock. 

Bought at an average price of $94.4k, when BTC finally broke out of its $100k resistance, a significant parabolic increase has been witnessed on Metaplanet’s stock, and is expected for bitcoin again by traders. The purchase pushed the price upward of $105k momentarily before correcting on the intraday chart. 

With good Q1 results and aggressive bitcoin purchases , the Japanese firm’s stock price has seen huge trading volumes on the Tokyo Stock Exchange and other global indexes. The company’s Bitcoin Strategist, Dylan Leclair, revealed on May 20 that 2.51 million shares of the company’s DN3 stock in Germany were traded, with a total transaction value of 15.35 million euros. 

$MTPLF recorded 21.14 million stocks traded, amounting to $150.29 million in value. Investor sentiments believe the institutional buy would likely trigger FOMO, attracting more investors looking to join the wave. 

Metaplanet becomes the most-shorted stock in Japan

Japan’s equity data revealed that Metaplanet is the country’s most shorted stock by hedge funds. 

“Apparently, Metaplanet is the most shorted stock in Japan. Do they think betting against Bitcoin is a winning strategy?”

– Simon Gerovich Metaplanet CEO

Crypto experts and analysts believe that despite this massive rally, the company’s stock is relatively cheap. BlockStream CEO Adam Back argued that, in his opinion, Metaplanet is relatively inexpensive based on the historic mNAV ranges. He added that the Japanese firm is expanding 3.8 times faster than the US-based Microstrategy when measured by market net asset value mNAV coverage. 

However, he still believes that shorting is a bad idea since the latest rally is the second 3350:TYO circuit breaker limit-up day in a row, which is a very bad time to short, according to him. Bitcoin maverick Michael Saylor reinforced Back’s idea, noting that if $MTPLF is any indication, 3350 will hit limit-up again the next day.  

Adam Livingstone, a Bitcoin analyst, says the Japanese stock is not very big and, as such, lacks enough liquidity to exit in case of a squeeze. Metaplanet is currently heavily invested in BTC ; therefore, its stock is highly correlated to the bitcoin price. 

Short sellers betting the stock will fall are under pressure as the stock price continues to hit upper limits, and trading halts were triggered for two days on the Tokyo Stock Exchange (TSE). The temporary halt has restricted short sellers, who have now turned to OTC trading in the international markets to cover their positions. 

Bitcoin Bull is a meme coin that has benefited from the current wave of bulls. The Bitcoin-themed meme coin provided users with a unique ecosystem where the initial purchase could lead to future gains due to Bitcoin’s growth. 

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