Japan: Metaplanet stock falls below value of held Bitcoin

An unusual situation has occurred in which the corporate value of Japan's Bitcoin (BTC) reserve company Metaplanet (Metaplanet) has fallen below the value of the Bitcoin it holds. Shares plunged as the company halted additional purchases over the past two weeks, causing the company's market value to fall below the total value of its held BTC.

According to Cointelegraph on the 14th (local time), Metaplanet's 'market-to-Bitcoin net asset value ratio (mNAV)' fell to 0.99, marking the first time it has been below 1. This ratio is an indicator comparing the company's real value (a figure excluding cash balances from market capitalization, liabilities, preferred stock valuation, etc.) with the assessed value of its held Bitcoin; if it is below 1, it means the company is being valued lower than its held assets.

Metaplanet's mNAV has fallen more than 7 points since mid-June. This is because the stock plunged 75% from its early-year peak (¥1,895 · about $13) to about $3.20. The company has stopped buying Bitcoin since September 30, and investor sentiment has been judged to have weakened since then.

Metaplanet currently holds a total of 30,823 Bitcoins. When it bought its first Bitcoin in July last year after converting from a Japanese hotel company to a Bitcoin-strategy reserve company, mNAV surged to 22.59 but later began a gradual decline.

Smartkarma analyst Mark Chadwick said, "This decline appears to be the deflation of the Bitcoin strategic reserve theme bubble," and "However, for long-term investors, Metaplanet being traded at a discount now could be a buying opportunity."