Metaplanet Stock Crashes 12% as Enterprise Value Falls Under Bitcoin Holdings

Metaplanet stock tumbles 12% on Tuesday as the firm’s value falls below its total Bitcoin holdings for the first time. Asia’s largest corporate Bitcoin holder faces heat after the recent crypto market crash, which dragged BTC price below $110,000.

Metaplanet Stock Falls 12% Today

Metaplanet stock closed 12.36% lower at 482 JPY on October 14, recording an intraday low and high of 480 and 534, respectively. Trading volume was significantly higher at 61 million, compared to the average volume of 46 million, indicating that traders opened short positions on the stock.

Both Japan-listed 3350 and US-listed MTPLF stocks are now down more than 75% from their all-time highs (ATH) in June, as per Yahoo Finance data. Stock tumbled more than 18% during the Bitcoin price crash to $104,582 last Friday.

Metaplanet stock may face more selling pressure as it formed a “death cross” on the daily timeframe. A “death cross” forms when the 50-MA (blue) crosses below the 200-MA (red).

Metaplanet Stock’s “Death Cross” Formation. Source: Trading View

Metaplanet’s Enterprise Value Slips Below Bitcoin Holdings

The Tokyo-listed hotelier has accumulated 30,823 BTC worth $3.47 billion in its corporate treasury, achieving a yield of 496.4% YTD. It became the fourth-largest Bitcoin holder after purchasing 5,268 BTC worth $615 million at an average price of $116,870 per coin. The firm sits on an unrealized profit of 322.48 million, according to the company’s data.

However, the continued fall in its stock from an all-time high of 1,930 in mid-June has impacted investors’ sentiment. Today, the company’s mNAV, the ratio of its market capitalization and debt to its Bitcoin holdings, drops to 0.99.

Metaplanet mNAV

As CoinGape reported earlier, the firm faced massive shorting from financial giants such as Morgan Stanley, UBS, Jefferies, and JPMorgan. Institutions could open shorts on Metaplanet stock again amid concerns over falling enterprise value below its Bitcoin holdings and “death cross.”

BTC price fell 3% in the past 24 hours, with the price currently trading at $112,198. The 24-hour low and high were $111,569 and $116,020, respectively. Furthermore, the trading volume has decreased by 18% in the last 24 hours, indicating a decline in interest among traders.

Source: https://coingape.com/metaplanet-stock-crashes-enterprise-value-falls-under-bitcoin-holdings/