Metaplanet Stock Jumps as Bitcoin Bet Boosts Investor Trust

Metaplanet’s stock gained new strength on the Tokyo Stock Exchange after weeks of falling. On September 10, the company’s stock price rose 17%, ending a steep decline that had worried investors.

The fresh momentum is driven by two major developments. This comes especially as the Japanese firm sees new global backing and has stronger capital reserves in place.

Metaplanet Stock Rebounds with $30M Global Investment Boost

Earlier this year, Metaplanet stock had reached a peak of 1,900 JPY. However, the rally did not last long. The price tumbled almost 70% from those highs, erasing gains and raising doubts about its aggressive Bitcoin strategy. 

The 17% rise during Wednesday’s trading session on the Tokyo Stock Exchange suggests renewed investor confidence in the firm’s Bitcoin-focused strategy. 

One of the main drivers behind the rally is the investment from Nakamoto Holdings. Through its subsidiary KindlyMD, the firm announced a $30 million contribution as part of Metaplanet’s ongoing international equity financing. 

The funding is scheduled for completion on September 16, with the issuance and delivery of Metaplanet’s common stock set for September 17. This move shows that, like many other Bitcoin-focused firms, Metaplanet is actively using different financial tools to buy more Bitcoin.

David Bailey, Chairman and CEO of KindlyMD, said Metaplanet plays an important role in Japan’s Bitcoin market. He highlighted the importance of building a strong global network of Bitcoin-focused companies. The gesture also gave markets a clear signal that Metaplanet’s long-term strategy is being recognized beyond Japan.

Metaplanet Boosts Bitcoin Strategy with Bigger Capital Raise

Alongside Nakamoto Holdings’ investment, Metaplanet announced that it successfully upsized its capital raise to $1.4 billion. This will allow the company to strengthen its Bitcoin income-generation strategy by increasing its reserve allocation to 10%, up from 5%.

Metaplanet currently holds 20,136 BTC with an mNAV of 1.5 after buying 1,009 BTC for 16.48 billion yen, worth about $112 million last week. With the new funds, it could buy up to 11,000 more BTC, increasing its holdings by nearly 50% and strengthening its place as one of Asia’s biggest public Bitcoin holders.

Stock Outlook and Investor Sentiment

Investor interest in Metaplanet has grown significantly in recent weeks. The company confirmed that income from its Bitcoin strategy will be directed toward dividend payments. This move is poised to attract long-term holders.

Market models also suggest that the worst of the correction may be over. The Power-law Quantile model puts the stock’s lowest point at 705 JPY and its fair value at 1,332 JPY. This suggests that Wednesday’s rally could mark the start of a longer recovery.