Metaplanet stock flashes a death cross as key metric tumbles
Metaplanet stock price plunged and crossed a crucial support level as the company’s net asset value fell below its Bitcoin holdings for the first time.
- Metaplanet stock price has crashed and moved below a key support at ¥500.
- The stock has formed a death cross pattern as the 50-day and 200-day EMA crossed each other.
- Technical analysis points to more downside in the near term.
Metaplanet plunges as mNAV falls
Metaplanet, a top Bitcoin (BTC) treasury company, plunged to a low of ¥482, its lowest level since May, and 75% below its highest point this year. This plunge has erased billions of dollars in value.
Metaplanet stock has plunged as interest in Bitcoin treasury companies waned. Michael Saylor’s Strategy stock remains in a deep bear market even as Bitcoin remains below its all-time high.
Other companies with Bitcoin in their holdings, such as Bullish, MicroCloud Hologram, and Trump Media, have all plunged in the past few months.
Most importantly, the significant premium that Metaplanet had a few months ago has now plunged. According to Bloomberg, the mNAV ratio dropped below 1 for the first time since it began its accumulation. This is a sign that its Bitcoin holdings are now worth more than its enterprise value.
A highly positive mNAV is favorable for Bitcoin treasury companies, as it makes it easier for them to raise capital through share sales.
In addition to the industry challenges, Metaplanet stock has plunged because it has largely stopped accumulating Bitcoin, possibly because of the falling premium.
It has also declined due to profit-taking among investors, as the stock was up by almost 4,000% between its lowest point in 2024 and the year-to-date high. It has also dropped due to rising dilution, as its outstanding shares have jumped from 181 million in 2021 to 654 million.
Metaplanet stock price technical analysis
The daily time frame chart shows that the Metaplanet share price has been in a strong downtrend in the past few months. It lost important support at ¥500, its lowest point in September. Moving below that level invalidated the small double-bottom pattern.
Metaplanet stock price has also invalidated the falling wedge pattern, which often leads to a strong breakout. It has also formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages have crossed.
Therefore, the stock will likely continue falling as sellers target the key support at ¥300, its lowest point in April.
