Metaplanet Stock Surges 300% Amid Bitcoin Boom and Short Squeeze

Metaplanet, a Japanese company, has experienced a notable increase in its stock price as Japanese investors increasingly opt for Bitcoin through the NISA (Nippon Individual Savings Account) scheme. This tax-exempt investment initiative allows investors to gain exposure to Bitcoin without incurring capital gains tax, making Metaplanet an attractive option for those looking to invest in cryptocurrencies.

The company's aggressive Bitcoin accumulation strategy has been a key driver of its recent success. Metaplanet has been purchasing Bitcoin at a rapid pace, positioning itself as a serious institutional player in the Bitcoin space. This strategy has made the company a standout in a market where few publicly traded companies are heavily involved in crypto assets. The company's Bitcoin acquisition yield is more than 11 times higher than that of a well-known U.S. company led by Bitcoin bull Michael Saylor.

Metaplanet's rise is not just about its corporate moves; it also offers a unique tax benefit for retail investors in Japan. Holding Bitcoin directly comes with a hefty tax burden, as capital gains are taxed as regular income. Rates can go as high as 55%, making direct investment in cryptocurrencies unattractive to many. However, Metaplanet stock can be purchased through the NISA program, which allows Japanese residents to invest up to about $25,000 annually without paying capital gains tax. This advantage makes Metaplanet a highly appealing Bitcoin proxy investment for retail traders looking for tax-free crypto exposure.

One of the biggest current drivers behind Metaplanet’s rising share price is a growing short squeeze. The stock is now the most shorted equity in Japan, with nearly 30% of its outstanding shares sold short. That means a large number of traders are betting that the stock’s price will fall. But as Metaplanet’s price keeps climbing, those short sellers are finding themselves in a bind. Over the past few days, Metaplanet has hit the Tokyo Stock Exchange’s daily upper price limit three sessions in a row. This circuit breaker restricts trading beyond a set price level, making it harder for short sellers to buy back shares and exit their positions. With each upward lock, short sellers’ losses mount, and the likelihood of a massive short squeeze — where they’re forced to cover at much higher prices — grows stronger.

Some traders have reportedly lost over 300% on their positions, and with each passing day of price limits, the pressure increases. Once trading restrictions lift, Metaplanet could witness a sharp spike driven by a flurry of short covering. This situation has put Metaplanet on the radar of global investors, and if the analysis of crypto investor Richard Byworth is accurate, its run may be far from over. Byworth believes Metaplanet’s price could double from its current level and still be reasonably valued compared to a well-known U.S. company led by Bitcoin bull Michael Saylor. A move to $21 per share would bring its valuation in line with Bitcoin holdings, yet it would still be below the company’s past peak.

With strong Bitcoin fundamentals, favorable tax treatment for local investors, and a brewing short squeeze in motion, Metaplanet seems poised for further gains. The stock’s recent breakout has already put it on the radar of global investors, but if Byworth’s analysis is accurate, its run may be far from over. For now, all eyes are on the next trading session — and on whether short sellers will finally blink.