Metaplanet Sets New Profit Target, What Happened as Stock Price Hit Limit Up for Two Consecutive Days?

05/24/2025

Japanese Version of MicroStrategy Metaplanet Experiences Significant Stock Price Volatility

The Japanese version of MicroStrategy, Metaplanet, has recently seen dramatic fluctuations in its stock price. Not only does it rank first in terms of volatility, but it also has the highest short-selling ratio among companies. With listings in both Japan and the United States, Metaplanet has become a new target for arbitrageurs, providing new options for trading strategies that utilize Bitcoin and stock price arbitrage similar to MicroStrategy.

Japan’s First Bitcoin Reserve Strategy Company Metaplanet

Metaplanet is Japan’s first publicly listed “Bitcoin Treasury Reserve Company,” which uses Bitcoin as its primary financial reserve asset. The company raises funds through the issuance of stocks and bonds to continuously increase its Bitcoin holdings, aiming to enhance the Bitcoin yield per share (BTC Yield) as its core performance indicator.

(Strategy Leads the Trend: A Detailed Guide to Investing in Bitcoin Reserve Strategy Companies)

In just over a year, Metaplanet has become the publicly listed company with the most Bitcoin in Asia. This strategy has garnered significant attention in the Japanese market, and it has been included in multiple global and local ETFs.

Metaplanet’s stock, 3350.T, has been listed on the Tokyo Stock Exchange for many years. It will begin trading on the U.S. OTCQX market on December 19, 2024, with the stock code MTPLF, representing a listing form known as Foreign Ordinary Share. Both listings represent the same company but trade in different markets.

This move aims to attract more international investors, especially American institutional and retail investors interested in its Bitcoin strategy. CEO Simon Gerovich stated that this is a crucial step in expanding global investor participation in Metaplanet’s development.

Why Conduct Multiple Listings?

When a company is listed on exchanges in different countries simultaneously (known as multiple listings or cross-border listings), it usually has the following characteristics and limitations:

Increased liquidity: Companies can attract investors from different markets, increasing stock trading volume and liquidity.
Expanded investor base: Investors from different regions can more easily purchase company stocks, enhancing the company’s global influence.
Improved corporate image and reputation: Listing in multiple markets can make a company appear more international, contributing to enhanced brand value.
Lower capital costs: Companies can take advantage of financing conditions in different markets to find lower borrowing costs.
Foreign exchange and market opportunities: This can reduce the risk of relying on a single market and capitalize on favorable exchange rates or economic conditions.

However, multiple listings also increase compliance costs and liquidity management constraints.

For example, Alibaba initially listed on the New York Stock Exchange (NYSE) in 2014, setting the record for the world’s largest IPO at that time. Later, to facilitate investment from Chinese investors, Alibaba conducted a secondary listing on the Hong Kong Stock Exchange (HKEX) in 2019, successfully attracting more capital from Asian markets.

Should Stock Prices of Dual-Listed Companies Be the Same?

Typically, stocks of companies with multiple listings will not have identical prices across different exchanges, primarily influenced by the following factors:

Market supply and demand: Different investor compositions and trading habits on various exchanges may lead to higher demand for stocks in one market, driving prices up, while another market may see lower demand.
Foreign exchange rates: When a company is listed in different countries, stock prices will be affected by local currency exchange rates. For instance, Alibaba’s stock prices may differ between the U.S. and Hong Kong due to fluctuations in the USD-HKD exchange rate.
Trading hours: Different markets have varying opening and closing times, which may affect the timing of news that impacts stock prices. For example, while U.S. markets are open, Asian markets may be closed, meaning global events could influence stock prices in one market but not be reflected in another.
Liquidity: Different trading volumes may affect stock prices. For example, if one market has higher trading activity, stock prices may be more stable; while a market with lower trading activity may experience larger fluctuations due to single transactions.
Price fluctuation limits: Different exchanges have different rules; for example, U.S. stocks do not have price fluctuation limits, whereas Taiwanese stocks have a 10% limit.

What Are the Differences Between MTPLF and 3350.T?

As Metaplanet is listed in both Japan and the United States, the primary difference in stock prices arises from exchange rates. As illustrated in the chart below, since MTPLF (represented by the purple line) began trading in the U.S., its stock price has mirrored that of 3350.T (depicted by the bars) listed in Japan.

However, both stocks have exhibited astonishing volatility in recent days! The following table compares last week’s stock prices after adjusting for exchange rates, revealing that the price difference once reached as high as 137%! This is due to the absence of price fluctuation limits in U.S. stocks, whereas Japanese stocks are limited, resulting in 3350 reaching its daily price ceiling on 5/21 and 5/22, preventing further price changes.

Metaplanet Becomes a New Target for Arbitrageurs

Recently, MTPLF has become one of the most actively traded stocks in the over-the-counter market, while Metaplanet (3350.T) is also among the most short-sold stocks in Japan. This may be attributed to many institutions, professional investors, and market makers engaging in arbitrage.

Notable short-seller Jim Chanos recently stated in a CNBC interview that the practice of using fundraising to buy Bitcoin and then justifying a higher company valuation with “we have Bitcoin” is absurd. He suggested that investors could go long on Bitcoin while shorting the company stock to engage in arbitrage.

(Notable Short-Seller Jim Chanos: Go Long on Bitcoin + Short MicroStrategy for Arbitrage)

In addition to buying Bitcoin while shorting Metaplanet, traditional financial investments may be more adept at trading Metaplanet’s stocks listed in Japan and the U.S. for arbitrage opportunities!

However, Metaplanet CEO Simon Gerovich seems unconcerned about the significant short-selling of Metaplanet. He proudly stated that Metaplanet is Japan’s most volatile stock and remarked:

“Volatility is the pulse, the flame, the fuel, and Bitcoin is the spark that keeps it burning!”

He acknowledged that Metaplanet is the most short-sold stock in Japan and questioned:

“Do they really believe that shorting Bitcoin is a successful strategy?”

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and their prices may fluctuate dramatically. You may lose your entire principal. Please assess risks carefully.