Metaplanet Inc.'s stock dropped sharply by 6.5% on October 17, 2025, closing at ¥402 in Tokyo trading, following a massive cryptocurrency market crash that erased approximately $19.3 billion in liquidations between October 10 and 11—the largest such event in history. This decline pushed the company's market capitalization to around ¥459.19 billion, below the value of its Bitcoin holdings, resulting in a modified Net Asset Value (mNAV) ratio of 0.99, indicating the firm's enterprise value is now less than its Bitcoin reserves.
CEO Simon Gerovich addressed investor concerns, defending Metaplanet's strategic shift toward issuing preferred shares to grow Bitcoin per share without diluting common shareholders. He explained that preferred shares, with a fixed dividend rate (e.g., 6%), allow capital raising while avoiding the dilution caused by common stock issuance. Gerovich illustrated that if Bitcoin compounds at 30% annually, the long-term effect mimics issuing equity at an mNAV of 8.6x, potentially increasing Bitcoin per share over time. He emphasized Metaplanet's debt-free status and plans to introduce Bitcoin-backed yield products in Japan's credit markets to attract investors.
The crypto market crash, initially attributed to panic selling but later suspected to involve a planned manipulation attack, has heightened volatility for Bitcoin-linked firms like Metaplanet. Despite the stock's wide trading range between ¥104.50 and ¥1,930 over the year, analysts note that Metaplanet's unique position—holding more Bitcoin than its market value—could offer recovery potential if Bitcoin prices rebound. However, investor sentiment remains divided, with some questioning the timing of preferred share issuance amid mNAV compression and fading enthusiasm for 'MicroStrategy-style' investments.
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