The decline marks a symbolic turning point for the Tokyo-based firm, whose total market value has now slipped beneath the worth of its Bitcoin holdings – a first since it began accumulating the cryptocurrency.

The stock finished the day at 482 JPY after briefly touching 480, with trading activity soaring well above normal levels. Analysts said the spike in volume hinted at aggressive short positioning from traders anticipating further downside. Once hailed as Asia’s answer to MicroStrategy, Metaplanet’s shares have now erased more than three-quarters of their value since peaking in mid-June, when Bitcoin’s rally pushed the company into the global spotlight.

Technical indicators are painting a grim picture. The firm’s daily chart has formed a “death cross” pattern, often interpreted as a signal of prolonged weakness. Market strategists warn that such formations, combined with sliding crypto prices, could trigger another wave of institutional shorting.

Metaplanet’s balance sheet remains dominated by Bitcoin. The company currently holds about 30,800 BTC – roughly $3.47 billion at current prices – generating a near 500% gain for the year. Its most recent purchase, totaling over 5,200 BTC at an average of $116,870, cemented its position as the fourth-largest corporate holder globally. Yet this success on paper contrasts sharply with its tumbling equity value: the company’s market capitalization and debt together are now worth slightly less than its Bitcoin stash.

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The disconnect between Metaplanet’s crypto assets and its market valuation is fueling debate among investors about how to price companies heavily tied to digital assets. Some argue that the market is discounting regulatory and liquidity risks, while others see the stock as an underpriced proxy for Bitcoin itself.

Major financial institutions such as Morgan Stanley, UBS, and JPMorgan reportedly opened large short positions earlier this year, anticipating this very divergence. With Bitcoin still struggling to regain momentum after dropping below $110,000, those bets may continue to pressure Metaplanet’s stock in the near term.

At the same time, Bitcoin’s own performance remains lackluster. The world’s largest cryptocurrency is trading around $112,000, down about 3% over the last 24 hours. Trading volume has thinned, suggesting investors are retreating from high-risk assets as volatility cools following last week’s dramatic liquidation wave.

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