Metaplanet stock price continued its freefall this week, reaching a low of ¥745, its lowest level since May 19 this year. It has now plunged by over 62% from its highest point this year, making it one of the worst-performing Bitcoin treasury companies
Why Metaplanet Stock Price is Plunging
Metaplanet is often seen as Japan’s version of MicroStrategy. Like MSTR, it was a struggling company a few years ago until it changed its strategy to become a Bitcoin accumulator.
Today, it is the sixth-largest Bitcoin holder among publicly traded companies, holding 20,000 coins worth $2.2 billion. The company plans to eventually own 210,000 coins.
Metaplanet’s stock price has plunged in the past few days, even as the company secured shareholder approval to raise ¥555 billion ($3.8 billion) to continue the accumulation. Still, the company faces a funding challenge to reach its goal of owning 210k coins, which explains why it has plunged.
The other reason behind the Metaplanet stock price plunge is that it is consistent with the ongoing performance of other Bitcoin treasury companies. MSTR stock price has plunged by over 30% from its highest point this year. Similarly, American Bitcoin (ABTC) stock prices tumbled by double digits after its reverse merger.
One reason for this is that the Bitcoin price has moved into a correction after falling by over 10% from its highest point this year. Another concern for investors is the valuation, given a $3.8 billion gap between its Bitcoin holdings and enterprise value.
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Further, the Metaplanet stock price has plunged as the industry has become highly saturated. There are now over 100 companies with Bitcoin treasuries in their holdings. These firms now hold over 1 million coins in their portfolios.
Metaplanet Share Price Analysis
The daily timeframe chart shows that the Metaplanet stock price has plunged from a high of ¥1,934 in July to ¥725 today. It has invalidated the falling wedge pattern, which we had noted earlier.
Metaplanet share price has now plunged below the 50-day and 200-day Weighted Moving Averages (WMA). These two MAs are about to cross each other, which would form a death cross.
The Average Directional Index (ADX) remains at 32, a sign that the downtrend is gaining momentum. Therefore, the most likely scenario is that the Metaplanet stock price will continue to fall as sellers target the psychological point at ¥500, given the ongoing bear market.
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