Metaplanet's Bitcoin Bet Pays Off: Market Cap Surpasses Chipmaker Kioxia

Metaplanet's Bitcoin Gamble Turns Golden

Japan's Metaplanet Inc., initially a hotelier, has seen its market capitalization explode after adopting a strategy of aggressively accumulating Bitcoin. The company's stock has surged nearly 400% in less than two months, fueled by the recent crypto rally, surpassing the market cap of memory chipmaker Kioxia Holdings Corp.

Metaplanet's market value exceeded ¥1 trillion ($6.9 billion) on Monday, also overtaking chipmaker Screen Holdings Co. and Tokyo Metro Co., a major subway operator. This surge follows Metaplanet's announcement of purchasing ¥16.9 billion worth of Bitcoin, coinciding with Bitcoin reaching a peak of $111,980 on May 22.

Metaplanet intends to raise approximately $5.4 billion to further expand its Bitcoin holdings, mirroring the strategy of MicroStrategy, which has amassed over $60 billion in Bitcoin.

Over five years, Metaplanet shares have skyrocketed over 3,000%.

Key Takeaways:

• Metaplanet's market capitalization surpassed Kioxia due to Bitcoin investments.
• The company plans to continue accumulating Bitcoin.
• The stock has seen a phenomenal rise, but short positions are increasing, suggesting caution among some investors.
• The company currently lacks analyst coverage.

However, not everyone is convinced by Metaplanet's meteoric rise. Short positions against the stock have increased, representing about 23% of its free float as of June 12, which is the largest among similarly sized companies listed in Tokyo.

Metaplanet is listed on the Tokyo Stock Exchange's Standard section and is the largest stock on the bourse without analyst coverage.