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- Metaplanet stock fell 12%, trading volume surged amid shorting.
- Company’s Bitcoin holdings ($3.47B) now exceed its market cap.
- Death cross formation signals potential further stock declines.
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Metaplanet, Asia’s largest corporate Bitcoin holder, saw its stock tumble 12.36% on Tuesday, closing at 482 JPY. The decline marked a critical threshold: the company’s enterprise value now falls below its Bitcoin holdings for the first time. This comes amid broader market volatility that pushed Bitcoin below $110,000 last week, rattling investor confidence.
Heavy Trading and Shorting Pressure
Tuesday’s session recorded unusually high trading volume at 61 million shares, up from the 46 million average, signaling significant shorting activity. Analysts point to the formation of a “death cross” on the daily chart—when the 50-day moving average crosses below the 200-day moving average—as a bearish technical indicator that may amplify selling pressure.
Both Metaplanet’s Japan-listed 3350 and US-listed MTPLF stocks have now fallen over 75% from their all-time highs in June, reflecting the impact of BTC price swings on investor sentiment.
Bitcoin Holdings Outweigh Market Cap
The hotelier holds 30,823 BTC valued at $3.47 billion, up 496.4% year-to-date. With a recent purchase of 5,268 BTC at an average price of $116,870, the company maintains an unrealized profit exceeding $322 million. Despite these gains, Metaplanet’s mNAV—market capitalization plus debt relative to Bitcoin holdings—has dropped to 0.99, signaling a market valuation below its crypto treasury.
This situation has drawn attention from major financial institutions. Morgan Stanley, UBS, Jefferies, and JPMorgan have reportedly shorted Metaplanet stock, and further institutional pressure could be on the horizon.
Also Read: Metaplanet Buys 5,268 BTC for $623M, Becomes 4th Largest Public Bitcoin Holder
Bitcoin Volatility Adds Pressure
Bitcoin itself is showing signs of cooling. Over the past 24 hours, BTC dropped 3% to trade around $112,198, with trading volume down 18%. This declining momentum may further weigh on Metaplanet shares, which remain closely tied to the crypto market’s fortunes.
Metaplanet’s unprecedented drop below its Bitcoin holdings highlights the risks of heavy corporate crypto exposure. Investors should monitor technical signals like the death cross and broader Bitcoin market trends, as these factors could dictate further stock volatility.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
