Metaplanet Stock's Price Adjustment: Could Buying at a Discount Post Recent Bitcoin Acquisition be Profitable?

Metaplanet Increases Bitcoin Holdings and Aims for Future Growth

The Japanese company Metaplanet Inc. (3350.T) has made headlines in the cryptocurrency world with its recent Bitcoin (BTC) purchases and ambitious targets for future growth.

Analyst Zynx has highlighted the Power-law Quantile Model, which suggests that 705 JPY represents a potential floor price for Metaplanet shares. This model also serves as a clear visualization of the relationship between Bitcoin accumulation and the stock price of Metaplanet Inc. (3350.T). However, the current trading price of the Metaplanet stock stands at 705 JPY, as of the latest reports.

On September 8, Metaplanet purchased an additional 136 BTC worth $15.2 million, bringing its total BTC holdings to 20,136 BTC, valued at approximately $2.08 billion USD. This acquisition represents 66% of the company's year-end target of holding 30,000 BTC.

The premium over Metaplanet's Bitcoin holdings has dropped from nearly eight times to about twice, raising concerns about potential shareholder dilution. However, some investors see buy-the-opportunities in the Metaplanet stock due to its recent correction.

Since its peak at 1,900 JPY in June, the Metaplanet stock has corrected by 63%. The stock has also slipped under 700 JPY on the Tokyo Stock Exchange, marking a 17% decrease over the past week. Despite this correction, the median fair value of the Metaplanet stock is estimated to be 1,332 JPY.

Metaplanet's flywheel model, which funds additional Bitcoin purchases through its rising stock price, has slowed in recent weeks. To continue its Bitcoin accumulation, Metaplanet secured shareholder approval to raise an additional 555 billion Japanese Yen, or $3.8 billion, to fund its Bitcoin purchases.

Metaplanet aims to scale its BTC holdings to 100,000 BTC by the end of 2026 and reach 210,000 BTC by the close of 2027. This ambition places Metaplanet among the 100 public companies, as reported by Harvard, that now hold 4% of the Bitcoin supply.

In conclusion, Metaplanet's strategic Bitcoin purchases and growth targets have positioned it as a key player in the cryptocurrency market. The company's recent stock correction presents potential opportunities for investors, while the Power-law Quantile Model suggests a potential floor price of 705 JPY for the Metaplanet shares.