Metaplanet, once known primarily as a budget hotel operator, has emerged as Japan’s most shorted stock among hedge funds. CEO Simon Gerovich took to X earlier today to caution investors against betting against Metaplanet, comparing such actions to betting against Bitcoin itself.
The company’s stock has witnessed a staggering increase of over 4,800% over the past year, driven by its strategic shift towards Bitcoin investments.
In 2024, Metaplanet adopted a Bitcoin-first treasury strategy, which has resulted in a dramatic rise in its stock value. Currently, the company boasts a treasury of 7,800 BTC, equivalent to more than $800 million, following its recent acquisition of 1,004 BTC just two days ago.
Apparently Metaplanet is the most shorted stock in Japan. Do they really think betting against Bitcoin is a winning strategy? pic.twitter.com/SAKsOMO4MX
— Simon Gerovich (@gerovich) May 21, 2025
A Setup for Global Short Squeeze?
Despite Metaplanet’s remarkable stock surge, many market analysts are questioning the sustainability of its valuation, leading to an increase in short positions among hedge fund managers in Japan. As the company’s shares reached their upper daily price limits, the Tokyo Stock Exchange implemented trading halts for two consecutive days, putting pressure on short sellers.
The temporary restrictions on the TSE have forced short sellers to seek alternative avenues, turning to over-the-counter (OTC) trading in international markets to cover their positions. However, this shift has presented challenges due to lower liquidity, compelling traders to compete for a finite supply of shares, often at elevated prices compared to their original short-sale levels. This situation has sparked speculation about a potential global short squeeze, a sentiment echoed by Tesmanian founder and Bitcoin proponent Vincent Yu in a recent X post. He remarked:
“This could be a really huge Metaplanet short squeeze. Short sellers are now needed to buy back in the lowest liquidity market $MTPLF & DN3 which will push up the price higher and faster, that cause more halted in Japan.”
“Really Bad Timing to be Short”: Blockstream CEO
Blockstream CEO Adam Back, known for his pivotal role in the development of Hashcash, also weighed in on the discussion via X, asserting that, based on historical market NAV ranges and cover metrics, Metaplanet’s stock is still relatively undervalued.
“Shorting it seems like a really bad idea to me! This is the second 3350:TYO circuit-breaker limit-up day in a row, really bad timing to be short,” he commented.
In related developments, Bitcoin experienced a surge beyond $107,700 during trading hours earlier this morning in Asia, coming within 1% of its all-time high of $108,786.
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