Metaplanet Crashes Under ¥600 as UBS Aligns With Morgan Stanley on Bitcoin Short

Metaplanet’s stock drops below ¥600 as UBS joins Morgan Stanley in shorting the Bitcoin treasury firm amid rising institutional bets.

 

Metaplanet’s stock dropped below ¥600 on Monday amid mounting short positions from major financial institutions, including UBS and Morgan Stanley.

The Bitcoin digital asset treasury firm has faced substantial selling pressure, with hedge funds and banks betting against its stock.

The latest move by UBS to join Morgan Stanley, Jefferies, and JPMorgan in shorting Metaplanet has contributed to its stock decline. This marks a significant dip in Metaplanet’s stock, which closed 8.37% lower at ¥591 on Monday.

Institutional Short Positions in Metaplanet

The growing short positions in Metaplanet have been driven by concerns among large financial institutions. UBS has opened a new short position, betting against 7.31 million shares of Metaplanet. 

Morgan Stanley, the largest short holder, has 20 million shares shorted, with additional positions added recently. Jefferies follows as the second-largest short holder with 10.54 million shares.

Other institutions, including JPMorgan, Citigroup, Barclays, and Goldman Sachs, also have short positions in Metaplanet’s stock. 

However, some of these firms, including Goldman Sachs, JPMorgan, and Citigroup, have been reducing their short positions. The rise in institutional short positions indicates growing skepticism surrounding Metaplanet’s future performance.

Metaplanet Stock Drops Despite Bitcoin’s Rise

Metaplanet’s stock price has fallen 39% over the past month, despite the price of Bitcoin rising above $116,000. The firm has been selling equities to raise funds for purchasing more Bitcoin, a strategy that appears to be backfiring. 

On Monday, the stock reached a low of ¥546, before closing at ¥591. The drop follows a month of declining stock prices, with Metaplanet struggling to regain upward momentum.

Despite this decline, the firm plans to raise $1.4 million to purchase more Bitcoin, aiming to hold 30,000 BTC by 2025. The company plans to increase its Bitcoin holdings contrasts with the negative market reaction to its stock.

Metaplanet’s failure to attract investor confidence has been compounded by its decision to sell stocks to fund its Bitcoin purchases.

Pressure Mounts on Metaplanet

Metaplanet stock has been under heavy pressure from the institutional shorting activity. This pressure has resulted in a significant loss in value, with the stock now trading at its lowest point since May.

Analysts have pointed out that the firm’s strategy of selling stock to buy Bitcoin has not resonated with investors. The growing short interest in Metaplanet suggests that institutional investors are increasingly bearish on the company’s outlook.

The rise in institutional short positions, coupled with the firm’s efforts to increase Bitcoin holdings, has led to increased volatility in its stock. As Metaplanet continues to battle institutional short interest, it remains to be seen how these strategies will affect its future performance in the market.