Metaplanet Stock Targeted 50% Higher by Benchmark Analyst

Benchmark analyst Mark Palmer has initiated coverage of Metaplanet (3350.T) with a buy rating and a ¥2,400 price target, comparing the company to Michael Saylor's Strategy due to its aggressive bitcoin acquisition strategy. This target represents approximately 50% upside from the stock's close of ¥1,650 overnight.

Palmer highlighted Metaplanet's "hyper-accumulation" strategy, which aims to accumulate 210,000 BTC by 2027, equivalent to 1% of the total supply. This ambitious plan is supported by a unique capital-raising strategy that benefits from market volatility. Metaplanet's recently announced '555 Million Plan' involves issuing 555 million moving strike warrants to raise ¥770 billion ($5.3 billion) over 6 to 10 months, which will be used to fund further bitcoin purchases.

Originally a small hotel operator, Metaplanet underwent a significant transformation in April 2024, becoming the nation’s first listed bitcoin treasury play. This pivot allowed the company to offer leveraged exposure to bitcoin for Japanese investors who face tax hurdles to direct crypto ownership. Since this shift, Metaplanet's stock has delivered an impressive 7,742% return, outperforming every other Japanese equity by a significant margin.

Despite trading at a 5.12x premium to net asset value (NAV), Palmer justifies this valuation by pointing to the company's explosive growth in its bitcoin holdings. Metaplanet has increased its bitcoin stack by 8,655% since Q3 2024, while its diluted shares have increased by 263%. This disparity underscores the company's aggressive accumulation strategy and its potential for future growth.

In summary, Metaplanet's bold bitcoin acquisition strategy and unique capital-raising plan have positioned it as a standout player in the Japanese market. With a buy rating and a ¥2,400 price target, Benchmark analyst Mark Palmer sees significant upside potential for the company's shares. Metaplanet's transformation from a small hotel operator to a leading bitcoin treasury play has resulted in staggering returns, making it a compelling investment opportunity for those looking to gain exposure to the cryptocurrency market.