Metaplanet stock rose 18.38 percent on Monday, emerging as a safe haven for investors amid Japan's debt crisis and deteriorating bond market.
Metaplanet stock price has once again hit a fresh high, gaining 18.38 percent on Monday, while closing at 966 JPY on the Tokyo Stock Exchange.
It comes as Japan's debt crisis deepens, with the yield on the 30-year government bond rising 100 basis points over the past 45 days to a record 3.20 percent. Thus, the Bitcoin holding firm has emerged as investors’ safest bet amid this macro uncertainty.
Metaplanet stocks set to break new records
With a staggering 180% rally in the past month, Metaplanet stock has caught the attention of investors, amid strong gains in Bitcoin. This is a replica of how Bitcoin as a Proxy Strategy (MSTR) bets have performed in the past.
The Japanese firm's stock has seen a huge increase in liquidity over the past week, and trades 20+ hours a day across markets as diverse as Japan, Germany and the United States.
Additionally, the company's CEO Simon Geroch also confirmed that MetaPlanet has emerged as the most bought stock last week through NISA accounts at Japan's largest online brokerage SBI Securities.
This shows that Japanese investors are taking advantage of NISA (Nippon Individual Savings Account), a tax-free investment scheme, to gain exposure to Bitcoin through Metaplanet stock.
Concerns over the company’s exploding valuation
Amidst the one-sided rally over the past month, some have also expressed concerns over the company’s exploding valuation. However, Metaplanet's Bitcoin strategist Dylan LeClair allayed concerns by pointing to $BTC 's ratings.
The Japanese Bitcoin holding firm has confirmed its strong financial position with a BTC rating of 69.24x. LeClair noted that the company's Bitcoin Net Asset Value (BTC NAV) is highly collateralized, ensuring full bond coverage, even if the price of bitcoin falls to $2,000.
Metaplanet's flexible capital structure positions it as a safe haven for investors seeking exposure to Bitcoin without the associated risks of direct cryptocurrency holdings. Furthermore, this excessive collateralization underscores its ability to weather significant market volatility.
As Bitcoin prepares for a strong rally ahead, the firm's market net asset value (mNAV) is expected to rise in line with Bitcoin price momentum. As a result, the company’s Bitcoin holdings are likely to see substantial appreciation per share.
Japan's debt crisis is deepening.
The yield on Japan's 30-year government bond has jumped a staggering 100 basis points over the past 45 days, hitting a record high of 3.20 percent.
The dramatic shift has caused the value of more than $500 billion in 40-year "safe" Japanese government bonds to lose 20% in just six weeks, leaving clear cracks in the stability of the bond market.
Japan's debt-to-GDP ratio has exceeded 260% for the first time in history, nearly double that of the United States and among the five highest globally. Last week, the country’s prime minister described the Japanese debt crisis as “worse than Greece.”
On the other hand, recent bond auctions have failed to meet sufficient demand. Amid this situation, investors are finding comfort by betting on companies like MetaPlanet that have exposure to $BTC .
The Japanese government has unveiled a ¥900 billion ($6.5 billion) emergency aid package aimed at cushioning the impact of proposed U.S. tariffs. The move is expected to inject additional liquidity into the economy, which will ultimately benefit firms like $BTC and Metaplanet.
