Metaplanet stock price is in a free fall, erasing some of the gains made after its pivot to Bitcoin accumulation.
Summary
- Metaplanet share price has slumped by 63% from the year-to-date high.
- Bitcoin treasury stocks have plunged in the past few months.
- Technical analysis points to more downside in the coming weeks.
Metaplanet shares have plunged to ¥709, their lowest level since May 19, and 63% from their highest point this year. This performance makes it one of the worst-performing Bitcoin treasury companies in the industry.
Have Bitcoin treasury firms fallen out of favor?
Metaplanet, a Japanese hotel operator, has become one of the top Bitcoin accumulators. It has bought 20,000 coins, making it the sixth-biggest public holders of Bitcoin (BTC).
The company aims to emulate Michael Saylor’s Strategy (holder of 636,505 coins) by buying 210,000 coins over time. Its shareholders gave it the nod to raise $3.8 billion for further acquisitions.
The Metaplanet stock price has plunged in the past few months as investors have soured on the industry. A closer look shows that most companies with Bitcoin in their holdings have all slumped.
MSTR stock price has plunged by over 20% from its all-time high. Similarly, companies such as American Bitcoin, MicroCloud Hologram, and Bullish have all experienced a slump.
The stock has also dropped because of concerns about it valuation in relation to its Bitcoin holdings. Its current Bitcoin holdings are worth $2.2 billion, much lower than the enterprise value of $5 billion. As such, investors may be getting concerned about the $2.79 billion gap in its valuation.
Metaplanet share price may be plunging because of profit-taking among investors. Despite its recent crash, it is one of the best-performing Japanese stocks, having jumped by over 3,980% from its lowest level in 2024.
Metaplanet stock price technical analysis
Metaplanet stock chart | Source: TradingView
The daily timeframe chart shows that the Metaplanet share price has been in a freefall in the past few months. It has moved from a high of ¥1,930 to ¥709 today.
This freefall may continue as it crossed the critical support level at ¥723, its highest swing in February this year. It is about to form a death cross pattern as the 50-day and 200-day Weighted Moving Averages near their crossover.
The Average Directional Index has moved to 32, a sign that the trend is strengthening. Therefore, the stock will likely continue plunging as sellers target the key support at ¥500. This sell-off will accelerate if Bitcoin price continues moving sideways.