Metaplanet Stock Set to Skyrocket as Short Sellers Get Squeezed!

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Metaplanet Stock Undervalued Despite <a href="https://jpyxx.com/btc-usd/">Bitcoin</a> Surge – Says Investor Richard Byworth

In simple terms, Metaplanet is garnering significant attention within Japan’s financial circles due to its unique position as the nation’s sole stock market investment avenue for Bitcoin. Despite an impressive surge in its price recently, it appears that the company may still be underestimated in value at present.

As per crypto investor Richard Byworth, Metaplanet’s current share price is relatively low when considering the amount of Bitcoin it possesses. At present, each share costs $10.82 (in the U.S. OTC version, MTPLF). This pricing places its stock at more than five times its net asset value based on its Bitcoin holdings. To provide a point of reference, MicroStrategy (MSTR), an American company with substantial Bitcoin holdings, is traded at just 1.75 times its Bitcoin worth.

Short Sellers Are Getting Trapped

On Japan’s market, Metaplanet stands out as a heavily shorted stock, with approximately 30% of its total shares being sold short. However, due to a significant surge in the stock’s price, short sellers find themselves in a predicament where they must hold onto their positions.

For three consecutive days, the stock has reached its maximum allowable price increase on the Tokyo stock market. Consequently, it’s no longer possible to sell this stock at a higher price within trading hours, thus creating more difficulty for short sellers in closing their positions.

As a researcher observing current market trends, I find myself noting that certain short sellers are currently grappling with losses exceeding 300% due to their inability to repurchase shares to close their positions. The removal of any restrictions could potentially trigger a significant price surge – a phenomenon known as a “short squeeze” – propelling the stock prices skyward.

Strong Bitcoin Buying and Macro Trends

On a recent basis, Metaplanet’s Bitcoin acquisitions have been substantial, resulting in a Bitcoin return that surpasses MicroStrategy’s by more than elevenfold. This indicates that Metaplanet is rapidly expanding its Bitcoin reserves.

It appears that international bond markets are displaying some distress as U.S. and Japanese government bond yields increase. Historically, such a rise in yields might prompt central banks to reduce interest rates once more. Typically, a decrease in interest rates benefits Bitcoin and associated equities.

Why Japanese Investors Like Metaplanet

Directly holding Bitcoins in Japan can be costly due to the fact that capital gains are taxed as ordinary income at rates reaching 55%. However, investing in Metaplanet via Japan’s NISA (Nippon Individual Savings Account) allows investors to bypass capital gains tax on approximately $25,000 per year.

In Japan, this tax benefit is drawing a significant number of retail investors because Metaplanet is currently the most convenient method for them to invest in Bitcoin through the stock exchange.

What’s Next for Metaplanet?

As a crypto investor, I find it intriguing when Byworth suggests that if Metaplanet’s price were to double and reach approximately $21, it might resemble MicroStrategy’s valuation based on Bitcoin assets. However, even at this point, it would still be below its previous all-time high valuations. This implies there could potentially be more room for growth in the future.

Given the predicament of short sellers and robust buying interest from investors, the stock might be poised for significant price fluctuations in the near future.

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2025-05-23 10:27