Metaplanet, a little-known Japanese company until recently, is now making major headlines as the country’s leading Bitcoin-focused stock. The Tokyo-listed firm has captured investor interest thanks to its aggressive Bitcoin accumulation strategy and rising stock price. Yet, according to crypto investor Richard Byworth, Metaplanet may still be significantly undervalued — even after its recent surge.

Byworth, a former CEO of the digital investment firm EQONEX, believes Metaplanet is trading at a price far below its actual Bitcoin asset value. At a recent price of $10.82 per share on the U.S. OTC market under the ticker MTPLF, the stock reflects just over five times the value of the Bitcoin the company holds. In comparison, MicroStrategy — the well-known U.S. company led by Bitcoin bull Michael Saylor — trades at around 1.75 times its Bitcoin asset value. This large gap suggests Metaplanet has room to rise before reaching fair valuation parity with its American counterpart.

Short Sellers on the Ropes

One of the biggest current drivers behind Metaplanet’s rising share price is a growing short squeeze. The stock is now the most shorted equity in Japan, with nearly 30% of its outstanding shares sold short. That means a large number of traders are betting that the stock’s price will fall. But as Metaplanet’s price keeps climbing, those short sellers are finding themselves in a bind.

Over the past few days, Metaplanet has hit the Tokyo Stock Exchange’s daily upper price limit three sessions in a row. This circuit breaker restricts trading beyond a set price level, making it harder for short sellers to buy back shares and exit their positions. With each upward lock, short sellers’ losses mount, and the likelihood of a massive short squeeze — where they’re forced to cover at much higher prices — grows stronger.

Some traders have reportedly lost over 300% on their positions, and with each passing day of price limits, the pressure increases. Once trading restrictions lift, Metaplanet could witness a sharp spike driven by a flurry of short covering.

Aggressive Bitcoin Accumulation Strategy

Metaplanet is not just a speculative play; the company has been actively purchasing Bitcoin at a rapid pace. Compared to MicroStrategy, Metaplanet’s Bitcoin acquisition yield is more than 11 times higher in recent weeks. This means the Japanese firm is growing its crypto holdings much faster than its U.S. counterpart, positioning itself as a serious institutional player in the Bitcoin space.

This strategy has made Metaplanet a standout in a market where few publicly traded companies are heavily involved in crypto assets. In a financial world grappling with rising government bond yields and mounting concerns over inflation, Metaplanet’s Bitcoin-focused strategy aligns well with macro trends favoring alternative stores of value.

A Tax-Friendly Gateway to Bitcoin for Japanese Investors

Metaplanet’s rise isn’t just about its corporate moves — it also offers a unique tax benefit for retail investors in Japan. In the country, holding Bitcoin directly comes with a hefty tax burden, as capital gains are taxed as regular income. Rates can go as high as 55%, making direct investment in cryptocurrencies unattractive to many.

However, Metaplanet stock can be purchased through the Nippon Individual Savings Account (NISA), a program that allows Japanese residents to invest up to about $25,000 annually without paying capital gains tax. This advantage makes Metaplanet a highly appealing Bitcoin proxy investment for retail traders looking for tax-free crypto exposure.

What Lies Ahead?

Richard Byworth believes Metaplanet’s price could double from its current level and still be reasonably valued compared to MicroStrategy. A move to $21 per share would bring its valuation in line with Bitcoin holdings, yet it would still be below the company’s past peak.

With strong Bitcoin fundamentals, favorable tax treatment for local investors, and a brewing short squeeze in motion, Metaplanet seems poised for further gains. The stock’s recent breakout has already put it on the radar of global investors, but if Byworth’s analysis is accurate, its run may be far from over.

For now, all eyes are on the next trading session — and on whether short sellers will finally blink.