Bitcoin Proxy Metaplanet Stock Shoots 18% As Japan Debt Crisis Worsens

Metaplanet stock price has once again hit a fresh upper limit, surging 18.38% on Monday, while closing at 966 JPY on the Tokyo Stock Exchange. This comes as Japan’s debt crisis worsens, with the 30-year government bond yields shooting by a massive 100 basis points, to a record 3.20%, in the last 45 days. Thus, the Bitcoin holding firm has proved to be investors’ safest bet in this macro uncertainty.

Metaplanet Stock Set to Break New Records

With a staggering 180% rally over the past month, the Metaplanet stock has caught investors’ attention, amid strong Bitcoin acquisition. This is a replica of how the Strategy (MSTR) bets have played out in the past as a Bitcoin proxy.

The Japanese firm’s stock has witnessed a massive liquidity surge over the past week, and trades for 20+ hours every day across different markets like Japan, Germany, and the United States.

Furthermore, company CEO Simon Gerovich has also confirmed that Metaplanet has emerged as the most purchased stock last week through NISA accounts at SBI Securities, Japan’s largest online brokerage.

This shows that Japanese investors are leveraging the NISA (Nippon Individual Savings Account), a tax-free investment scheme, to gain exposure to Bitcoin through Metaplanet stock.

Concerns Over Company’s Exploding Valuation

Amid the one-sided rally over the past month, some have even raised concerns over the company’s exploding valuation. However, Metaplanet’s Bitcoin strategist Dylan LeClair addressed the concerns by pointing out the BTC ratings.

The Japanese Bitcoin holding firm has reaffirmed its robust financial position with a BTC Rating of 69.24x. The company’s Bitcoin Net Asset Value (BTC NAV) remains highly over-collateralized, ensuring full bond coverage even if Bitcoin’s price were to drop to $2,000, noted LeClair.

Metaplanet’s resilient capital structure positions it as a safe haven for investors seeking Bitcoin exposure without the associated risks of direct cryptocurrency holdings. Moreover, this over-collateralization underscores its ability to weather significant market volatility.

As Bitcoin prepares for a strong rally ahead, the firm’s Market Net Asset Value (mNAV) is expected to soar in tandem with the Bitcoin price trajectory. As a result, the company’s Bitcoin holdings per share are likely to see substantial appreciation.

Japan’s Debt Crisis Worsens

Japan’s 30-year Government Bond Yield has surged by a staggering 100 basis points over the past 45 days, reaching a record high of 3.20%. This dramatic shift has led to over $500 billion in “safe” 40-year Japanese Government Bonds losing 20% of their value in just six weeks, highlighting clear cracks in the bond market stability.

Japan’s Debt-to-GDP ratio has surpassed 260% for the first time in history, nearly double that of the United States and among the top five highest globally. Last week, the country’s Prime Minister referred to the Japanese debt crisis as “worse than Greece”.

On the other hand, recent bond auctions have failed to capture enough demand. Amid this situation, investors are finding peace by betting on companies like Metaplanet that have BTC exposure.

The Japanese government has unveiled a ¥900 billion ($6.5 billion) emergency relief package aimed at mitigating the impact of proposed U.S. tariffs. This measure is expected to inject additional liquidity into the economy, ultimately benefiting BTC and firms like Metaplanet.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.