Metaplanet Surges 17% on $30M Nakamoto Investment

Metaplanet up 17% on September 10, after 26% correction last month. Bitcoin treasury firm Nakamoto Holdings invested $30 million...

Quick overview

  • Metaplanet's stock rose 17% on September 10 after a previous 26% correction, indicating a potential trend reversal.
  • Nakamoto Holdings invested $30 million in Metaplanet, reflecting increasing institutional interest in Bitcoin companies.
  • Metaplanet plans to increase its Bitcoin holdings by 50% with new funds, raising its reserve allocation from 5% to 10%.
  • Analysts believe Metaplanet's aggressive strategy will restore investor confidence and solidify its position as a leading Bitcoin proxy in Asia.

Metaplanet up 17% on September 10, after 26% correction last month. Bitcoin treasury firm Nakamoto Holdings invested $30 million in Metaplanet through its subsidiary KindlyMD (NASDAQ: NAKA).

This is part of Metaplanet’s equity financing and reflects growing institutional interest in Bitcoin companies. Nakamoto Holdings will finalize the funding on September 16, with stock issuance and delivery on September 17.

David Bailey, Chairman and CEO of KindlyMD, on Metaplanet’s role in Bitcoin adoption in Asia:

  • Metaplanet is Japan’s leading Bitcoin-holding company
  • The company’s strategy is to integrate Bitcoin into institutional finance
  • The partnership will expand Bitcoin globally

Bitcoin Reserve Allocation

Metaplanet has increased its Bitcoin reserve allocation from 5% to 10%, as part of its long-term income generation strategy. The company holds 20,136 BTC, with a market-adjusted net asset value (mNAV) of 1.5.

With the latest $1.4 billion fundraising, Metaplanet can buy 11,000 more BTC, potentially increasing its holdings by 50%. Earnings from this will support dividend payments, to attract more investors.

Key figures from Metaplanet’s Bitcoin strategy:

  • Current holdings: 20,136 BTC
  • Planned purchases: +11,000 BTC with new funds
  • Allocation: 10% of capital reserves in Bitcoin

This is in line with other global companies adopting Bitcoin as a treasury reserve asset.

Trend Reversal and Stock Outlook

The recent upmove may be a trend reversal for Metaplanet’s stock, which had fallen 70% from its June high of 1,900 JPY. The Power-law Quantile model suggests the stock bottomed at 705 JPY, with a fair value estimate of 1,332 JPY.

Investor sentiment is improving as institutional support grows and capital flows into Bitcoin. Analysts say Metaplanet’s aggressive strategy will restore confidence among shareholders and cement its position as the leading Bitcoin proxy in Asia.

If the momentum continues, Metaplanet may not only recover recent losses but also become the benchmark for companies that integrate Bitcoin into corporate finance.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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