Metaplanet In Jeopardy: Bitcoin Needs To Surpass $108,000 By December 18 To Prevent New Crisis
Overview
Metaplanet, a prominent player in Bitcoin investments akin to Japan’s MicroStrategy, faces a critical moment as Bitcoin’s price has dropped significantly. With Bitcoin trading well below its all-time highs, Metaplanet’s financial stability is in question, raising concerns about its future.
Current Situation
As of November 26, Metaplanet is the fourth largest public company holding Bitcoin, with over 30,000 BTC. The current valuation of these holdings is approximately $2.7 billion, based on an average acquisition cost of around $108,000 per Bitcoin. However, Bitcoin’s price has fallen to approximately $87,700, resulting in a nearly 17% loss on Metaplanet’s investments, which translates to about $640 million in losses.
The company’s stock price has also seen a drastic decline, dropping 81% from its June highs. The stock, which was valued at ¥1,935, is now trading at ¥366 on the Tokyo Stock Exchange.
To strengthen its Bitcoin holdings, Metaplanet recently borrowed an additional $130 million, utilizing a $500 million credit facility established in late October. This loan is secured by the company’s Bitcoin reserves and features a floating interest rate that allows for repayment at any time.
Market expert Shanaka Anslem has raised alarms on social media regarding Metaplanet’s short-term stability. He pointed out two critical dates to watch: December 18, when the Bank of Japan will decide on interest rates, and December 22, when Metaplanet shareholders will vote on a proposed $135 million fundraising initiative.
The decisions made on these dates are interconnected. If the Bank of Japan opts for tighter monetary policy, it could lead to a strengthened yen, potentially causing Bitcoin prices to decline. This scenario could collapse Metaplanet’s stock premium and jeopardize the fundraising vote. Conversely, if the bank maintains loose policies, it may result in a weakened yen but stable Bitcoin prices, possibly allowing the fundraising vote to pass.
Importance of the Situation
Metaplanet’s situation is significant not only for the company but also for the broader market. Japan currently does not have a Bitcoin exchange-traded fund (ETF), making Metaplanet the only option for Japanese investors to gain Bitcoin exposure through the stock exchange. This unique position previously contributed to a remarkable increase in the company’s stock value, but the recent drop in Bitcoin’s price has raised fears of a bear market among investors.
Leverage adds another layer of risk. For Metaplanet to break even, Bitcoin must return to $108,000. However, for the company’s investment model to work effectively, Bitcoin needs to surpass $130,000. Should Bitcoin fall below $70,000, Metaplanet may be forced to liquidate assets to meet collateral obligations.
Impact on the crypto market
- Metaplanet’s financial struggles highlight the risks associated with corporate Bitcoin investments.
- The outcome of the Bank of Japan’s interest rate decision could significantly influence Bitcoin’s price and Metaplanet’s stability.
- The situation underscores the absence of a Bitcoin ETF in Japan, which limits investment options for local investors.
- Market sentiment may be affected by the potential for a new bear market if Bitcoin’s price continues to decline.
- Investors are likely to closely monitor Metaplanet’s fundraising efforts as a bellwether for broader market health.
Updated: 11/27/2025, 9:27:21 AM
