Metaplanet Stock Shoots 17% After $30M Investment from Bitcoin Treasury Firm
Highlights
- Metaplanet stock gains momentum as company raises $1.4 billion for additional BTC purchases.
- The firm has increased its capital reserve allocation to 10%, and aims to add nearly 11,000 BTC more to its kitty.
- Technical models say that Metaplanet stock’s bottom is at 705 JPY and fair value at 1,332 JPY.
The Metaplanet stock rallied by a strong 17% on Wednesday, September 10, in a healthy trend reversal after a 26% correction last month. This rally comes after Bitcoin treasury firm Nakamoto Holdings announced a $30 million investment in Metaplanet. Asia’s largest Bitcoin holding public firm has also raised $1.4 billion for additional BTC purchases.
Metaplanet Stock Surge Shows Signs of Trend Reversal
The Metaplanet stock price surged 17% during Wednesday’s trading session on the Tokyo Stock Exchange, soon after the Japanese firm upsized its capital raise to $1.4 billion for additional Bitcoin purchases. Since hitting the highs of 1900 JPY in June, the stock has been on a freefall and corrected nearly 70% since then.
Another catalyst behind the stock rally is Bitcoin Treasury firm Nakamoto Holdings, which announced $30 million investment in the Japanese firm, through its subsidiary KindlyMD (NASDAQ: NAKA). The $30 million commitment forms part of the international equity financing unveiled by Metaplanet.
Nakamoto Holdings will complete the funding on September 16, with the issuance and delivery of common stock set for September 17. Speaking on the development, David Bailey, Chairman and CEO of KindlyMD, said:
“Metaplanet has established itself as a leader in Japan’s Bitcoin landscape through its commitment to advancing financial innovation and driving the global adoption of Bitcoin. We are proud to support their mission and believe this investment will further strengthen the global network of companies placing Bitcoin at the center of institutional finance.”
Boosting Capital Reserve Allocation for Bitcoin
Japanese firm Metaplanet has boosted its capital reserve allocation to 10%, up from 5%, to strengthen its Bitcoin income-generation strategy. The company confirmed it currently holds 20,136 BTC, following its fresh Bitcoin purchase earlier this week, with an mNAV of 1.5.
With its latest $1.4 billion fundraise, the company can add an additional 11,000 BTC to its kitty, raising its total holdings by 50%. Amid these developments, interest in the Metaplanet stock has recently spiked. The Japanese firm said that earnings from its Bitcoin strategy will be directed toward dividend payments.
Furthermore, the Power-law Quantile model shows that the Metaplanet stock bottom is at 705 JPY, and that its fair value is at 1332 JPY.
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