Metaplanet Stock: Is a Bull Run in Sight?

The Metaplanet stock rose significantly on Thursday, nearly 10% higher. The reason is obvious: Bitcoin continues its upward movement and climbs higher and higher. The price of Metaplanet stock thus reached ¥400, a substantial jump from the monthly low of ¥330. Nevertheless, the current price remains well below the annual high of ¥1,925.

Bitcoin Recovery Fuels Metaplanet Price Development

The company benefits massively from the strength of Bitcoin. The cryptocurrency has increased within a few days from around $80,000 to approximately $90,800, giving new momentum to Metaplanet as well. The reason is simple: Metaplanet, as a so-called Digital Asset Treasury Company, holds a total of 30,823 Bitcoin, which currently represent a value of about $2.8 billion. At the all-time high in October, these holdings were worth over $3.8 billion.

Unlike many competitors, the Metaplanet management does not plan to sell its Bitcoin positions. On the contrary: the management has borrowed $130 million in external capital and secures this with the existing Bitcoin reserves. This aims to continue the ongoing accumulation. The ambitious goal is to gather a total of 210,000 coins in the coming years.

Attractive Valuation Attracts Bargain Hunters

Another driver for the rally is the currently undervalued position of the company. The so-called mNAV (modified Net Asset Value) has fallen to 0.98 – a sign that the Bitcoin holdings are valued higher than Metaplanet’s market capitalization itself. This discrepancy creates a classic buying opportunity for investors.

The situation has two sides: On one hand, a falling mNAV means the stock appears extremely cheap compared to its intrinsic value. On the other hand, it becomes more difficult for the company to raise new capital if the market valuation is below the actual value of the held assets.

Additionally, the stock benefits from the overall strength of the Japanese stock market. The Nikkei 225 and the Topix index rose by over 1%, continuing their upward momentum.

Technical Signals Indicate a Bottom Formation

The daily chart of Metaplanet stock shows an interesting picture. After a pronounced downtrend in recent months – similar to other Bitcoin treasury companies – a bottom formation now appears to be taking shape. A double bottom pattern is recognizable, which often signals a bullish reversal.

Further technical indicators support this assessment: The MACD indicator is rising and approaching the zero line. The Relative Strength Index (RSI) has recovered from an oversold level of 26 in September to currently 45. Additionally, a falling wedge pattern has emerged – a classic reversal pattern.

These technical configurations suggest that Metaplanet stock could initiate a stronger upward trend in the foreseeable future. The next important resistance zone is observed at the ¥500 level. If the stock sustainably breaks through this level, it could signal a new upward movement and wake up investors with holdings or buying interest.