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The Metaplanet stock (OTCMKTS: MTPLF) rallied a massive 26.49% on Friday as soon as the Japanese firm announced a massive $5.4 billion fundraise, through an equity financing plan, for additional Bitcoin purchases. The stock ended trading at $11.65 yesterday, and is already up 245% over the past month. Market analysts believe that MTPLF still has the potential for a 5x rally by the end of 2025, if Bitcoin price rallies to $200K.
Metaplanet Stock Targets $50 This Year
On Friday, Japanese firm Metaplanet announced a massive $5.4 billion raise to fund additional Bitcoin purchases. As part of the plan, the company intends to issue 5.55 billion new shares through floating strike price warrants, leveraging its stock’s volatility and prevailing market demand. The development was enough to send the Metaplanet stock (MTPLF) soaring another 26% on Friday’s trading session in the US.
Richard Byworth, founder at Syz Capital, believes that the current fundraising by the Japanese firm will increase the market cap by 75% and expand its Bitcoin holdings sevenfold. He added that the scale of the fundraising is simply unprecedented, and even exceeds the boldness of Michael Saylor’s Bitcoin acquisitions in 2021. The analyst makes three key hypotheses on how the stock will perform from here onwards.
- Market Valuation Impact: Assuming Bitcoin price remains stable, the market net asset value (mNAV) for the MTPLF stock is likely to reach 3.5x. This will push the company’s market cap from $13 billion to approximately $23 billion. This would correspond to an MTPLF stock price increase to $18.
- Potential Stock Price Growth: Should mNAV climb to 5-6x, which is still below last year’s average levels, the market cap could surge to $32-38.5 billion, driving the Metaplanet stock price to $25-$30.
- Bitcoin Price Correlation: If Bitcoin hits $200,000 by the year’s end, the stock price could skyrocket to $50, assuming no additional raises occur before then.
Setting Up New Targets With Bitcoin Purchases
Even at the Tokyo Stock Exchange, the Metaplanet stock has clocked record trading volumes, primarily driven by is massive Bitcoin purchases. With its latest fundraise, the company has also revised its Bitcoin acquisition target to 210,000 BTC by 2027 i.e. 1% of the total BTC supply.
Source: Metaplanet
Commenting on the development, company CEO Simon Gerovich said: “Metaplanet has executed Japan’s FIRST EVER stock acquisition rights issuance priced ABOVE market, a notable departure from the typical 8 to 10 percent discount seen in similar financings. The structure is both shareholder-friendly and unprecedented in scale”.
Big market players continue to be bullish about Bitcoin moving forward. In his latest interview, Strategy’s Michael Saytlor said that BTC is a multi-decade story in unfolding and that the Bitcoin price could reach $13 million by 2045. He also debunked some threats of quantum computing to Bitcoin, in the coming years.
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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