Japanese Metaplanet stock falls below value of held Bitcoin

An unusual situation has occurred in which Japanese Bitcoin (BTC) hoarding company Metaplanet (Metaplanet) has a corporate value lower than the value of the Bitcoin it holds. Over the past two weeks the company stopped additional purchases, and the share price plunged, 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, recording below 1 for the first time. This ratio compares the company's intrinsic value (figures such as market capitalization, debt, valuation of preferred stock, etc., excluding cash balances) with the valuation of the Bitcoin it holds; a value below 1 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 share price plunged 75% from the early-year high (1,895 yen, about $13) to around $3.20. The company stopped buying Bitcoin after September 30, and investor sentiment is analyzed to have weakened since that time.

Metaplanet currently holds a total of 30,823 Bitcoin. When it first purchased Bitcoin last July after converting from a Japanese hotel company into a Bitcoin strategic reserve company, mNAV surged to 22.59 but then gradually trended downward.

Smartkarma analyst Mark Chadwick said, "This decline appears to be the process of the bubble in the Bitcoin strategic reserve theme bursting," and added, "However, for long-term investors, the fact that Metaplanet is trading at a discount now could be a buying opportunity."