Metaplanet's Volatile Stock Halts Trading Amid Bitcoin Surge
Metaplanet's stock has been in turmoil, with trading halted on the Tokyo Stock Exchange for two consecutive days due to extreme price volatility. The company, often referred to as 'Asia's MicroStrategy', has seen its shares surge due to aggressive Bitcoin accumulation.
Metaplanet's stock price has been anything but stable. On Tuesday, trading was halted at 783 yen, only to resume and close at 933 yen the following day. This volatility has led to trading being suspended, which in turn is forcing short sellers to find alternative markets to cover their positions.
Metaplanet's shares are predominantly traded on the FINRA OTC market in the US. With increased demand and heavy institutional short positions, a potential short squeeze could significantly impact the stock price. Metaplanet is the most shorted stock in Japan, with over 25% of its shares borrowed for short positions.
The company's earnings in Q1 FY2025 were largely driven by Bitcoin options trading, which accounted for 88% of its $6 million revenue and yielded a staggering 170% BTC return. Metaplanet currently holds over 7,800 BTC, valued at over $800 million, making it the 10th largest public company by Bitcoin holdings.
Metaplanet's aggressive Bitcoin strategy has led to significant stock price increases and volatility, with trading halts and potential short squeezes. The company aims to reach 10,000 BTC by the end of 2025, funding these acquisitions through zero-coupon ordinary bonds. As Metaplanet continues to accumulate Bitcoin, investors and traders alike will be watching the company's stock price and its impact on the broader market.
