Metaplanet Stock Rises as Bitcoin Holdings Reach 44,000 BTC in Q3
Metaplanet's stock climbed 2.06% to $1.87 on Monday after the company disclosed its Bitcoin holdings grew to 44,000 BTC by the end of Q3. The Tokyo-listed firm executed a rare balance-sheet test, selling 10,000 BTC for approximately $789.2 million and later repurchasing 11,000 BTC for about $948.7 million. This strategic move demonstrated liquidity and could enhance its credit profile.
Metaplanet's treasury valuation now stands near $3.8 billion based on current Bitcoin prices. The company emphasized that the sale and repurchase sequence showcased its ability to convert Bitcoin into cash while maintaining outstanding debt. This flexibility is crucial for long-term financing, particularly as Metaplanet plans to allocate 10% to 15% of its assets to strategic investments targeting recurring returns.
Bitcoin's resistance level near $87,570 could impact Metaplanet's stock performance. The cryptocurrency traded around $86,000 on Monday, with market participants monitoring Federal Reserve minutes and the 10-year Treasury auction. A close above $2.10 in Metaplanet's stock could strengthen short-term momentum, while a fall below $1.70 might bring the $1.20 52-week low back into focus.
The company's third-quarter revenue from its Bitcoin Income Generation business dropped 51% from Q2 and 65% year-over-year to about $5.4 million. Metaplanet will need its new net interest income strategy to improve earnings contributions as it expands its Bitcoin treasury.