Metaplanet share price rally looks unstoppable at the moment, with US-listed MTPLF stock shooting 108% on Wednesday, in a massive “short squeeze” amid the instability in Japan’s bond market. In the last five trading sessions on the Tokyo Stock Exchange, the Bitcoin holding firm has clocked 80% gains, as Bitcoin price inches to fresh all-time highs at $111,861.
Metaplanet Share Outperforms Amid Japan’s Bond Crisis
The yield on Japan’s 30-year Japanese government bonds (JGB) surged to an unprecedented 3.14%, while the 40-year yield climbed to a staggering 3.6%, marking all-time highs. With the Bank of Japan focusing much on bond monetization, analysts have warned about the government’s towering debt-to-GDP ratio of 250%.
As the investor confidence in JGBs sink, investors are dumping yen-denominated assets and looking for alternative assets with no links to bank policies. Interestingly, Bitcoin holding firm Metaplanet has emerged as a strong refuge to this.
Metaplanet Becoming A Hedge Against JGBs
Popular market analyst Adam Livingston reports that the Metaplanet share, who’s performance is closely tied to Bitcoin, has become a proxy for escaping Japan’s economic turmoil. Historically, short sellers leveraged Japan’s low interest rates to bet against Metaplanet, borrowing yen cheaply to fund their positions.
However, with JGB yields skyrocketing, the cost of borrowing yen has soared, making shorting the stock increasingly difficult. Furthermore, three main factors have contributed into short covering:
Rising Yields: Every increase in JGB yields has tightened margin rates, forcing shorts to unwind their positions.
Bitcoin Momentum: As Bitcoin gains, Metaplanet—closely tied to its trajectory—becomes more attractive, intensifying upward price pressure.
Retail and Institutional Convergence: From retail traders in Japan to global hedge funds, investors are piling into Metaplanet as a hedge against yen devaluation.
As a result, the Metaplanet share has entered a feedback loop, triggering algorithmic trading, retail FOMO, and media coverage, pushing the stock even higher. In a message on the X platform, company’s Bitcoin strategist Dylan LeClair stated: “Metaplanet has been halted at a max daily gain of +¥30 (+50%), and for the second day in a row, is the best performing stock in Japan”.
Comparing With GME of 2021
Market analysts have also started comparing the Metaplanet stock rally with GME’s popular “short squeeze” of 2021, which left many hedge funds bankrupt. But some market analysts believe that comparison with GME would be unfair.
While GME had no roadmap and turned out to be a pump-and-dump stock, MetaPlanet is investing in one of the most valuable asset i.e. Bitcoin.
Unlike GME, which didn’t gain intrinsic value from its hype-fueled rally, MetaPlanet’s strategy adds real, lasting value to the company. With Bitcoin driving its growth, MetaPlanet’s financials are set to look stronger than ever. Some experts like Adam Back believe that the Japanese firms stock still remains undervalued to its mNAV.
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
