Metaplanet Bitcoin bet draws criticism
Metaplanet becomes Japan’s most shorted stock amid Bitcoin spree
After decades of deflation, Japan’s inflation rate has surged to 3.6%, overtaking U.S. CPI and upending its debt markets.
Yields on 30- and 40-year Japanese government bonds (JGBs) have soared to levels not seen in over two decades, prompting a selloff that’s shocked global investors, reports BeInCrypto.
The Bank of Japan has slashed its bond purchases by ¥25 trillion ($172 billion) this year, but real yields remain negative—driving capital out of JGBs and sparking concern from figures like Bloomberg’s Lisa Abramowicz and Prime Minister Shigeru Ishiba, who likened Japan’s fiscal state to Greece’s.
As bond losses mount, the world is watching. Japan, which holds over $1.1 trillion in U.S. Treasuries, may start retreating from U.S. debt—potentially triggering spillover effects in Western bond markets already under pressure.
Metaplanet’s Bitcoin play becomes a lightning rod
Amid this turmoil, Tokyo-listed Metaplanet—once obscure—is now Japan’s most shorted stock, according to CEO Simon Gerovich. The company has gained notoriety for its MicroStrategy-style Bitcoin treasury strategy, adding over $230 million in BTC this quarter alone. With 7,800 BTC now on its books, Metaplanet has surpassed El Salvador in holdings and seen its stock surge over 5,000% in 2024.
But that growth has drawn short sellers. Hedge funds are reportedly piling into bearish bets, though some positions may reflect spread trades: shorting Metaplanet stock while going long on BTC or MicroStrategy. “It’s too wide,” noted investor Gary Cardone, referring to valuation gaps among crypto-exposed equities.
Ideology meets finance in Japan’s crypto pivot
For younger Japanese disillusioned with economic stagnation and the salaryman lifestyle, Bitcoin—and Metaplanet by proxy—represents an ideological and financial escape. “The bond market is imploding, and Metaplanet is the exit,” said UnChained’s Joe Burnett. Others view the short trade as flawed. “Japanese hedge funds are shorting a Bitcoin treasury while the BoJ is still distorting yields? You can’t make this up,” remarked analyst Peruvian Bull.
Despite the skeptics, Metaplanet’s bold pivot has turned it into a flashpoint in Japan’s economic narrative: fiat’s fragility versus crypto’s promise. Whether its stock proves overvalued or visionary, it now stands at the center of Japan’s financial reckoning.
Recently we wrote that Metaplanet, dubbed “Japan’s MicroStrategy,” has acquired another 1,004 bitcoin for $104 million, pushing its total holdings to 7,800 BTC.
