MTPLF stock was just pegged by global investment bank Chardan, to attain a higher price target, according to Metaplanet CEO Simon Gerovich.
Will this help bring a recovery in the stock price of the 6th largest Bitcoin treasury company as it faces short selling by financial giants such as JPMorgan, Morgan Stanley, and UBS?
Chardan Gives Buy Recommendation on Metaplanet Stock
New York City-headquartered global investment banking firm Chardan Capital Markets started covering Metaplanet stock on September 19, giving a buy recommendation on the stock.
The investment bank gave a price target of $9.90 (1455 JPY) for Metaplanet stock. The firm expanded its Bitcoin treasury to 20,136 BTC valued at over $2.3 billion after the last purchase of 1,009 BTC worth $112 million.
Japan-listed Metaplanet stock price closed 14.72% higher at 608 JPY on Friday. This happened after the stock saw buying at dips as it has tumbled more than 70% since mid-June.
Also, the firm has announced the creation of new subsidiaries in the US and Japan as part of its plan to continue scaling and growing its Bitcoin income generation business.
The new subsidiaries are Metaplanet Income Corp., Bitcoin Japan Inc., and Bitcoin Japan Co., Ltd.
This announcement followed the company’s recent completion of a “silent period.” CEO Simon Gerovich confirmed that it has received $1.4 billion from its international offering.
The 24-hour low and high were 548 JPY and 608 JPY, respectively. Also, the 24-hour trading volume was massively higher at 157 million than the average of 39 million.
However, the stock price is still down more than 30% in a month, as per Yahoo Finance. Meanwhile, MTPLF stock closed 2.72% lower $3.94 on Thursday. The stock is down 33% in a month.
Concerns Over Rising Short Positions on Metaplanet Stock
While Metaplanet is the most traded stock in the market, it also faced massive short positions. This became a concern for the firm, while it raised capital from selling equities.
Metaplanet (MTPLF) stock faces massive shorting from financial giants such as Morgan Stanley, Jefferies, and JPMorgan.
UBS re-entered the shorting strategy, which caused it to tumble below 600 JPY recently.
Morgan Stanley MUFG becomes the largest short holder with 20 million shares. The financial giant shorted another 1.92 million stocks, as per data last week
Bitcoin Price Slips to $116K Amid Renewed Selling Pressure
Bitcoin price fell near $116K in response to $3.5 billion in BTC options expiry and as holders sit at a 90% profit after the latest recovery post-Fed rate cut.
BTC price fell more than 1% to trade at $116,301 at the time of writing. The 24-hour low and high were $116,117 and $117,911, respectively.
Furthermore, the trading volume dropped massively by 35% over the last 24 hours, indicating selling interest among traders.
