Metaplanet starts coverage with a 'Buy' rating in the Japanese version of Strategy: Benchmark | CoinDesk JAPAN

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Metaplanet starts coverage with a "Buy" rating in the Japanese version strategy: Benchmark

  • Benchmark has started coverage of Metaplanet, assigning a "Buy" rating and a target stock price of 2400 yen.
  • Metaplanet is the Japanese version of Michael Saylor's strategy, analyst Mark Palmer stated.
  • Metaplanet stocks have outperformed all other Japanese stocks over the past 12 months, the Benchmark pointed out.

Benchmark analyst Mark Palmer has initiated coverage of Metaplanet with a "buy" rating and a target stock price of 2400 yen. He described the company as the "Japanese version of MicroStrategy" due to its aggressive Bitcoin (BTC) acquisition strategy.

This means an increase of about 50% from the previous day's closing price of 1650 yen. Metaplanet's ADR is traded in the U.S. under the ticker symbol "MTPLF" and closed at $10.36 on the 27th.

Mr. Palmer stated that the "Transcendent Accumulation" strategy of Metaplanet, aiming to accumulate 210,000 BTC or 1% of the total supply by 2027, is supported by a unique fundraising plan that leverages volatility.

In the "555 million plan" recently announced by Metaplanet, it will issue 555 million shares of new stock subscription rights (MS warrants) with exercise price modification clauses, and Mr. Palmer added that this will facilitate further purchases of Bitcoin by raising 77 billion yen in 6 to 10 months.

Once a small hotel management company, Metaplanet transformed its business in April 2024 to become Japan's first publicly traded Bitcoin treasury company. The company offers leveraged investment opportunities for Japanese investors facing tax barriers related to direct holdings of crypto assets. Its stock price subsequently achieved an astounding 7742% return, outperforming all other Japanese stocks by tenfold.

Metaplanet is trading at a premium of 5.12 times its net asset value (NAV), but Mr. Palmer stated that this valuation is justified by the explosive growth of Bitcoin. The company has increased its Bitcoin holdings by 8655% since the third quarter of 2024, while the number of diluted shares has increased by 263%.

Metaplanet stocks rose by 11% in Tokyo's after-hours trading, closing at 1650 yen.

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