Metaplanet’s stock has plummeted by 63% from its peak this year, hitting its lowest point at ¥709 since May 19. This sharp decline raises questions about the sustainability of its strategy.
The Japanese hotel operator ventured into Bitcoin acquisition, holding 20,000 BTC tokens. It aims to eventually own 210,000 coins, inspired by Michael Saylor’s approach. However, recent months have seen a downturn in investor confidence in Bitcoin-treasury companies.
Other firms like MicroStrategy, American Bitcoin, and Bullish have also seen their stock prices fall. This suggests a broader trend rather than isolated incidents. Concerns about valuation discrepancies exacerbate the issue.For example, Metaplanet’s Bitcoin holdings are valued at $2.2 billion,far below its enterprise value of $5 billion.
Key Points:
- Metaplanet shares are struggling despite a significant rise of over 3,980% from their lowest in 2024.
- The company faces criticism for a valuation gap of $2.79 billion between its holdings and enterprise value.
Technical indicators signal further trouble. The Metaplanet stock price recently fell below the crucial ¥723 support level, a move observed back in February. The potential formation of a “death cross” adds to bearish forecasts. With Bitcoin’s price performance stagnant,the downward pressure on Metaplanet could intensify,with ¥500 as the next key support level.
