Metaplanet Stock Soars to All-Time High, Sparking 'GameStop' Comparisons
Metaplanet's stock price has skyrocketed, reaching an all-time high of 933 yen on Wednesday, May 21, before trading was halted again. This surge has drawn parallels to the GameStop phenomenon and sparked intense competition among global investors and short sellers.
Metaplanet, dubbed 'Asia's MicroStrategy', has seen its stock price surge, triggering trading halts on the Tokyo Stock Exchange for two consecutive days. The company's total Bitcoin (BTC) holdings now stand at 7,800 BTC, valued at over $800 million, making it the 10th largest public company by Bitcoin holdings.
The company aims to reach 10,000 BTC by the end of 2025, funding these acquisitions through zero-coupon ordinary bonds. In Q1 FY2025, Metaplanet's earnings saw 88% of its $6 million revenue attributed to Bitcoin options trading and a remarkable 170% BTC yield. The recent Bitcoin (BTC) price surge has further intensified pressure on short sellers, potentially creating a chain reaction of buying on less liquid international markets. Short sellers are now competing with global investors for a limited supply of Metaplanet shares on international exchanges, often at prices above their initial short-sale levels. Metaplanet is the most shorted stock in Japan, with over 25% of its shares borrowed for short positions. The trading halts on the TSE have created a unique predicament for short sellers, forcing them to seek alternative venues to cover their positions. Metaplanet is also listed on the Singapore Exchange (SGX), which is significant for short sellers due to its considerably lower liquidity requirements compared to the TSE.
Metaplanet's stock price surge and Bitcoin (BTC) holdings have put it in the spotlight, drawing comparisons to the GameStop phenomenon. With trading halts and intense competition among investors and short sellers, the future of Metaplanet's stock remains uncertain. The company's ambitious Bitcoin (BTC) acquisition plans and impressive earnings from Bitcoin options trading have further fueled interest in this rapidly evolving situation.
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