Metaplanet Stock Trades At 447% Premium to Bitcoin, Analyst Flash Warning
Highlights
- Metaplanet stock reflects Bitcoin prices of $596,154, nearly five times its actual value.
- Japan's classification of Bitcoin gains as "miscellaneous income" with tax rates of up to 55% has prompted investors to seek alternative exposure.
- Metaplanet shares, taxed at 20% under capital gains laws, or tax-free within NISA accounts become preferred choice.
Metaplanet stock has rallied another 15%, hitting 1,116 JPY levels on the Tokyo Stock Exchange, while extending its monthly gains to more than 224%. This mega rally caught investors’ attention as the stock price is now trading at a 447% premium to Bitcoin, as if each BTC was worth $596,154 i.e. more than five times its actual price. Analysts at 10x Research have flashed warning signs in this valuation gap.
Is Metaplanet Stock A Risk Bet From Here?
Although the Bitcoin price has added $15,000, gaining over 16% over the past month, the Japanese stock has witnessed a mega rally, gaining 224% during the same period. Analysts at 10x research noted that the Metaplanet stock were trading as if Bitcoin were valued at $596,154, nearly 5x of its current pricing. Thus, the stock price is trading at a massive 447% premium to BTC.
Analysts have observed a concerning Net Asset Value (NAV) distortion developing, signaling potential underlying risks. Furthermore, with decreasing volatility and realigning of retail investors’ flows, analysts believe that the stock is now reaching an inflection point. The below image shows a comparison between Metaplanet, Strategy (MSTR), and Bitcoin price on a one-year chart, and the valuation gap that exists.
Adding to the market anxiety further is the uncertainty in the Japanese bond market, currency movements, rising yields, etc. In such uncertainties, Metaplanet has attracted further investor attention and demand, as per 10x Research.
High Bitcoin Taxes in Japan Raise Demand for Proxies
Although Japan is among the most crypto-friendly nations in the market, the taxation of Bitcoin as “miscellaneous income” subjects gains to rates as high as 55%. This is significantly higher than the 20% tax applied to standard capital gains. As a result, investors have been looking for Bitcoin proxy bets like Metaplanet instead of directly engaging with BTC.
Gains from Metaplanet shares are taxed at the more favorable 20% capital gains rate. Moreover, for investors using Japan’s NISA (Nippon Individual Savings Account), both capital gains and dividends from Metaplanet stock are entirely tax-exempt. This efficient tax treatment makes Metaplanet an attractive option for Japanese investors seeking exposure to Bitcoin.
If Bitcoin price rallies to fresh all-time highs, breaking past the key BTC resistance of $110K, the rally in Metaplanet might continue further.
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- Crypto Market Correction Intensifies As S&P 500, DXY Enter Dangerous Territory
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
