Metaplanet CEO Addresses Stock Value Concerns
The chief executive of Metaplanet, a Japanese firm dedicated to Bitcoin investments, addressed concerns regarding a significant decline in the company’s stock value during a recent discussion on the X platform. He clarified several key points:
Bitcoin Acquisition Strategy
Firstly, he explained that the announced timeframe for purchasing Bitcoin—from September to October—was primarily to establish a regulatory framework and should not be interpreted as a rigid deadline for action. The company’s strategy for acquiring Bitcoin will heavily emphasize execution speed, while also taking into account three essential factors:
- Maximize Bitcoin revenue
- Minimize impacts on market price
- Enhance revenue generation from Bitcoin holdings
Short Selling Legality
Secondly, he firmly denounced the legality of short selling stocks and compensating for them through newly issued shares, stating that such practices are explicitly prohibited by all brokerage firms in Japan. He stressed that the recent 30% dip in Metaplanet’s stock was neither anticipated nor intended by the company and that it is inappropriate for anyone to speculate publicly about ongoing market behaviors.
Institutional Investor Commitment
The CEO also highlighted that a large segment of the capital that Metaplanet manages originates from institutional investors who are committed to long-term positions.
Market Net Asset Value Warning
On a more urgent note, he warned that if the market Net Asset Value (mNAV) falls below the threshold of 1x, it could adversely affect the company’s Bitcoin yield. In such a scenario, Metaplanet may explore several options, including:
- Assessment of preferred stock issuance
- Initiating stock buybacks to stabilize the situation
