Metaplanet’s Bitcoin Strategy Sparks Trading Frenzy on Tokyo Stock Exchange

Tokyo, Japan — Metaplanet, a Tokyo-based company known for its aggressive Bitcoin accumulation strategy, has garnered global attention as its stock price skyrockets, prompting trading halts on the Tokyo Stock Exchange (TSE) for two consecutive days.

The company’s bold pivot to a Bitcoin-first treasury, alongside significant Bitcoin purchases, has propelled its stock to unprecedented heights. Recently, Metaplanet added 1,004 BTC, raising its total holdings to 7,800 BTC, now valued at over $800 million. This positions Metaplanet as the 10th largest public company by Bitcoin holdings, surpassing even El Salvador‘s national treasury.

In its first quarter report for FY2025, Metaplanet revealed that 88% of its $6 million revenue was attributed to Bitcoin options trading, resulting in an impressive 170% BTC yield. The company plans to acquire a total of 10,000 BTC by the end of 2025, funding these acquisitions through zero-coupon ordinary bonds.

The intense investor interest led to a dramatic rise in stock volatility. On Tuesday, trading was halted at 783 yen following a sharp price movement. The following day, shares closed at the daily limit-up of 933 yen, prompting another trading halt. These interruptions are part of TSE’s mechanism to manage extreme price fluctuations.

However, the trading halts have created challenges for short sellers, with Metaplanet being the most shorted stock in Japan. About 25% of the company’s shares are currently held short, putting significant pressure on these positions due to the limited liquidity on the TSE.

Consequently, short sellers are seeking shares on international exchanges, including Germany’s DN3 and the U.S. OTC ticker MTPLF. Although these markets have lower liquidity, they may present a necessary option for covering short positions.

Simon Gerovich, CEO of Metaplanet, pointed to the situation on X, signaling the dual pressures faced by investors as demand surges amidst constrained supply. Market observers suggest this scenario could lead to a short squeeze similar to the GameStop phenomenon.

The rise of Bitcoin has intensified the squeeze on short sellers, with projections indicating that the price fluctuations in less liquid foreign markets could further drive prices up, leading to additional trading halts in Japan.