Metaplanet’s enterprise value has fallen below the worth of its Bitcoin reserves, with shares plunging 70% since June
Tokyo-listed Metaplanet Inc is facing mounting pressure as its ambitious Bitcoin BTC $92 081 24h volatility: 1.8% Market cap: $1.84 T Vol. 24h: $45.54 B strategy appears to have lost investor confidence. The company’s enterprise value has fallen below the worth of its Bitcoin reserves, according to a recent report by Bloomberg.
The company began purchasing Bitcoin in April 2024 as a hedge against Japan’s long-standing economic challenges, like soaring public debt and a weakening yen. It drew inspiration from MicroStrategy’s high-profile playbook and turned Bitcoin into a strategic reserve asset.
Initially, the move paid off. The company’s stock surged to record highs by mid-June, trading at a hefty premium to the value of its crypto holdings. However, the rally soon stopped, and shares plunged about 70% since the peak.
As of Oct. 14, Metaplanet’s market cap and debt combined equaled just 99% of its Bitcoin holdings, pushing its modified net asset value (mNAV) below one.
From Premium to Pressure
According to data by BitcoinTreasuries.Net, Metaplanet currently holds over 30,823 Bitcoin, valued at more than $3.4 billion. This makes it the fourth-largest public holder of the top crypto after Strategy Inc., MARA Holdings, and XXI.
Despite achieving its ambitious goal of accumulating 30,000 BTC by the end of 2025, the company’s share price has failed to keep pace.
In September, shareholders approved a plan to issue preferred shares, raising about $1.4 billion through an international equity sale to continue expanding its Bitcoin reserves.
However, analysts note that with less capital available for countercyclical purchases, the firm’s role as a key market buyer has weakened. This is compounding pressure on its stock, 20% down in the past week.
Rising Risks for DATs
Many so-called digital-asset treasury firms (DATs) have seen this stock downturn recently. The companies that once traded at premiums are now slipping into discounts, as investor enthusiasm fades amid the BTC price slump.
Experts warn that large Bitcoin exposures could trigger liquidity crises during downturns, describing the model as a “ticking time bomb.”
Meanwhile, some long-term Bitcoin believers view Metaplanet’s discount as a potential buying opportunity. While corporate demand cools, investors continue to pour money into spot Bitcoin ETFs, attracting over $5 billion in inflows so far in October.
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