Benchmark lowers MetaPlanet target price to ¥1,100… “Bitcoin (BTC) strategy has both pros and cons”
Summary
- Benchmark said it lowered MetaPlanet’s target price from ¥2,400 to ¥1,100 while maintaining a Buy rating.
- MetaPlanet said the pros and risks of an aggressive Bitcoin accumulation strategy and a Bitcoin yield-generation strategy via preferred share issuance were both brought into focus.
- Benchmark said Bitcoin price volatility and funding conditions will be key variables affecting MetaPlanet’s share-price trajectory.
U.S. investment bank Benchmark has cut its target price for MetaPlanet, a company investing under a Bitcoin (BTC) strategy, to ¥1,100 from ¥2,400. It maintained its investment rating at Buy.
According to crypto-focused media outlet The Block on the 17th (local time), Benchmark analyst Mark Palmer said, “The latest earnings release highlighted both the benefits and risks of an aggressive Bitcoin accumulation strategy,” adding, “Investor demand for the issuance of preferred shares—part of the company’s Bitcoin yield-generation strategy—will be a key factor.”
Previously, MetaPlanet reported that while last year’s revenue grew sevenfold from a year earlier, it posted a net loss of ¥95 billion due to valuation losses on its Bitcoin holdings. That is equivalent to about $619 million.
Benchmark said Bitcoin price volatility and funding conditions are likely to be important variables shaping the stock’s trajectory going forward.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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