Metaplanet stock price pumped by almost 10% on Thursday as Bitcoin continued its recent recovery. It jumped to ¥400, up substantially from this month’s low of ¥330. Yet, the stock remains well below its year-to-date high of ¥1,925.
Metaplanet Stock Price Jumps as Bitcoin Rebounds
The main reason why the Metaplanet stock price has rebounded is that Bitcoin’s recovery has accelerated. Bitcoin soared from last week’s low of $80,000 to $91,000 today, and the trend is accelerating.
Metaplanet benefits whenever Bitcoin rises, thanks to the company’s vast BTC holdings. It holds 30,823 coins, currently worth about $2.8 billion. At Bitcoin’s peak in October, these coins were worth over $3.8 billion.
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Unlike other Digital Asset Treasury (DAT) firms, the company is not considering selling its coins. Indeed, the management raised $130 million in debt backed by its Bitcoin holdings to continue its accumulation. The management hopes to accumulate 210,000 coins in the next few years.
Metaplanet share price is also rising as investors go bargain hunting. Data shows that the company’s mNAV has dropped to 0.98, meaning that its Bitcoin holdings are worth more than its market capitalization.
The falling mNAV has pros and cons. Its main benefit is that it makes the stock a bargain compared to its previous price. The cons are that it makes it hard for a company to raise capital to accumulate more Bitcoin.
The Metaplanet stock price has also soared amid the ongoing surge in Japanese equities. Data shows that the Nikkei 225 and Topix indices soared by over 1% today, continuing a rally that has been going on this week.
Metaplanet Share Price Technical Analysis
The daily timeframe chart shows that the Metaplanet stock has been in a strong downtrend in the past few months. This crash has mirrored the performance of other Bitcoin treasury companies, such as Strategy and Trump Media.
A closer look shows that the recent downward trend is losing momentum. It has formed a double-bottom-like pattern, which often leads to a bullish breakout.
Metaplanet shares have formed a bullish divergence pattern, one of the most common reversal signals in technical analysis. The MACD indicator has been rising and is nearing the zero line. Also, the Relative Strength Index (RSI) has moved from the oversold level of 26 in September to the current 45.
Metaplanet shares have also formed a falling wedge pattern. Therefore, the stock is likely to rebound strongly in the near term, in line with our recent MSTR forecast. If this happens, the next key level to watch will be at ¥500.
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