Metaplanet stock price has surged this year, making it one of the best performers in the Nikkei 225 Index. It surged by over 10% on Monday, taking it closer to its all-time high of ¥1,925. It has soared by over 460% from its lowest point this year, giving it a market capitalization of over $7 billion.
Metaplanet stock jumps amid Bitcoin accumulation
In a statement on Monday, Metaplanet said that it continued its Bitcoin accumulation. It bought 1,005 coins last week for $108.1 million, bringing its total holdings to 13,350.
BitcoinTreasuries data shows that it is now the sixth biggest Bitcoin holder globally after Strategy, MARA Holdings, XXI, Riot Platforms, and Galaxy Digital Holdings. At the current price, its Bitcoin holdings are worth over $1.14 billion.
The company aims to continue accumulating Bitcoin as it works to reach 100,000 coins in its treasury by the end of next year. This means that it needs to buy 86,650 coins currently worth over $9.9 billion to get to its target.
It also hopes to have 210,000 coins by the end of 2027, meaning that it needs to raise cash aggressively to achieve this goal.
MetaPlanet noted that its Bitcoin Yield, a measure used widely by similar companies, has jumped to 348% this year. Bitcoin yield is calculated by estimating the percentage change in the ratio of Bitcoin held relative to its fully diluted shares.
Stock to depend on BTC price actio, but risk remains
MetaPlanet stock price will likely continue thriving as long as the Bitcoin surge gains steam. Analysts are highly bullish on Bitcoin prices. For example, we recently mapped a potential scenario where BTC price surges to $300,000 in the coming years.
BlackRock analysts anticipates that the coin will surge to $700,000 in the coming years, while Ark Invest expect it to hit $2.4 million by the end of the decade.
Therev are solid reasons to expect that this will happen. For example, recent data shows that Bitcoin ETF demand is skyrocketing in the United States, with the total inflows nearing the key level at $50 billion. BlackRock’s IBIT has become a $74 billion juggernaut, making it the fastest-growing ETF on record.
At the same time, Bitcoin supply in exchanges has plunged to the lowest point in years. Therefore, the imbalance between the Bitcoin demand and supply means that the coin will push it higher in the long term.
Therefore, soaring Bitcoin price will likely push the Metaplanet stock price higher over time.
Still, there is a significant risk in the stock’s premium since it has a market cap of over $7 billion against Bitcoin holdings worth $1.4 billion. This gives it a premium of about 5.1, much higher than MicroStrategy’s 1.68.
Therefore, there is a likelihood that the stock will start to underperform as it closes the valuation gap as Strategy has done lately. While Bitcoin is nearing the all-time high of $112,000, MSTR stock remains much lower than its record high.
Metaplanet stock price analysis
The daily chart shows that the Metaplanet share price has surged in the past few years after the company embraced its Bitcoin treasury strategies. The risk, however, is that it is slowly forming a double-top pattern whose upper side is at 1,925 yen and neckline is at 1,257 yen.
The stock also remains above the 200-day and 100-day Exponential Moving Averages. For example, it is about 90% above the 100-day moving average.
Therefore, there is a risk that the Metaplanet stock price will go through mean reversion and drop soon. Mean reversion is a situation where an asset moves back to its historical averages.
The post Metaplanet stock price rises amid Bitcoin buying, but risks remain appeared first on Invezz
