Bullish against the trend! Benchmark maintains a "Buy" rating, predicting that Metaplanet's stock price will big pump 340%.

Despite Metaplanet's stock price suffering a 40% big dump in the past month, Benchmark Equity Research remains bullish on the long-term prospects of this Japanese Bitcoin financial company, maintaining a “buy” rating and setting a target price of 2,400 yen—indicating a potential pump of up to 340% compared to the current trading price of 542 yen. This rare contrarian bullishness has garnered widespread follow in the market, with Benchmark analyst Mark Palmer's latest research report detailing the key factors supporting this optimistic forecast.

Benchmark rebuts bearish rhetoric: Bitcoin funding strategies have not collapsed

In the face of market doubts about the long-term viability of Bitcoin funds, especially against the backdrop of a stagnant market, Benchmark analyst Mark Palmer directly refuted these concerns in a research report released on Wednesday.

“We believe that claims suggesting Bitcoin funding strategies are collapsing and that Metaplanet is losing momentum are both premature and unfounded,” Palmer emphasized in the report. “While recent attacks from short sellers have put pressure on the stock price of this Japanese company, such claims ignore the context of its rapid rise.”

Palmer specifically pointed out that Metaplanet was one of the best-performing stocks in Japan last year, and despite experiencing a recent pullback, its stock price has still risen by 56% year to date. “This excellent performance does not reflect that the company's strategy has lost credibility, but rather indicates that the company is bouncing back amidst the recent market turmoil,” he explained.

Bitcoin fundamentals remain strong

Benchmark believes that the fundamental principles supporting Bitcoin's fiscal strategy remain unchanged. The core value proposition of Bitcoin as a scarce, programmable reserve asset and inflation hedge tool is still valid, and institutional adoption of Bitcoin is continuously deepening and expanding.

“As long as the long-term adoption curve of Bitcoin continues to rise, the capital market will still be willing to accept innovative financing structures used to fund Bitcoin purchases, the concept of a Bitcoin treasury should have enough room for development,” Palmer stated in the report.

Metaplanet's Unique Advantages: More Than Just Holding Bitcoin

Benchmark emphasizes the unique advantages of Metaplanet compared to other Bitcoin holding companies—its ability to generate recurring income through derivative strategies using its held Bitcoin. This makes its business model more sustainable, not solely relying on the rise in Bitcoin prices.

“Metaplanet's business model goes beyond the simple 'buy and hold' strategy,” said an industry analyst familiar with the company's operations. “They are building a complete Bitcoin financial ecosystem, which enables them to create value in different market environments.”

Aggressive Expansion Bitcoin Acquisition Strategy

(Source: The Block)

Metaplanet has not slowed down its Bitcoin acquisition pace due to the fall in stock prices. On Monday, the company announced the acquisition of 5,419 Bitcoins at a price of approximately $632.5 million, with an average price of $116,700 per coin, making it the largest acquisition by the company to date.

This transaction increases Metaplanet's total holdings to 25,555 Bitcoins, making it the fifth largest Bitcoin holder among publicly listed companies globally. This bold move comes after the company raised $1.4 billion through an international offering, demonstrating the management's strong confidence in its Bitcoin strategy.

Strategic Expansion: The Key Role of the New Subsidiary in Miami

The Benchmark report also detailed the strategic significance of Metaplanet establishing a new subsidiary, Metaplanet Income Corp., in Miami, USA. This subsidiary has secured an initial funding of $15 million and is expected to focus on developing Bitcoin-related financial products, including derivatives.

“This initiative has dual strategic significance,” explained a fintech expert. “Firstly, it allows Metaplanet to enter the U.S. market, which is one of the largest Bitcoin financial markets in the world; secondly, by operating these activities separately from the core Bitcoin assets, the company enhances governance and transparency, which is particularly important for institutional investors.”

The Potential of Innovative Financial Products

The establishment of Metaplanet Income Corp. may mark an important evolution in the company's business model. By developing Bitcoin-related financial products, Metaplanet can not only generate additional revenue from its own holdings of Bitcoin but also provide financial services to other Bitcoin holders, thereby opening up new sources of income.

“This could be the first step for Metaplanet to transform from a simple Bitcoin holding company to a comprehensive Bitcoin financial service provider,” said a crypto financial expert. “If successful, this will greatly enhance the scalability and profitability of its business model.”

How should investors view the prospects of Metaplanet?

In the face of the significant fluctuations in Metaplanet's stock price, how should investors formulate their investment strategies? Here are a few considerations:

1. A long-term perspective is crucial

Benchmark's target price of 2,400 yen is based on expectations for the end of 2026, which means investors need to take a long-term view. The volatility of the Bitcoin market may cause stock prices to continue to fluctuate in the short term, but the long-term trend could be more favorable.

2. Follow execution rather than short-term stock price

Metaplanet management has performed excellently in executing its Bitcoin acquisition strategy, maintaining aggressive expansion even during periods of stock price fall. Investors should follow whether the company continues to effectively implement its strategic plan, rather than overly focusing on short-term stock price fluctuations.

3. Evaluate the development of innovative financial products

The development of Metaplanet Income Corp. will be a key observation point. If the company can successfully develop and promote Bitcoin-related financial products, this may become an important driver of future growth.

4. Monitoring Institutions Adopting Trends

The institutional adoption of Bitcoin is a key factor supporting the Metaplanet business model. Investors should closely follow the changes in institutional attitudes towards Bitcoin, as well as the developments in the regulatory environment.

Conclusion: Investment Opportunities Against the Trend

Benchmark's strong optimism towards Metaplanet represents a contrarian investment viewpoint. Although market sentiment may continue to remain cautious towards companies holding Bitcoin in the short term, Metaplanet's aggressive expansion strategy and business model innovation could create unique opportunities for long-term investors.

As Palmer emphasized at the end of the report: “As long as the long-term adoption curve of Bitcoin continues to rise, the capital markets will still be willing to accept innovative financing structures, and the concept of Bitcoin treasury should have enough room for development.” For investors who believe in this premise, the current stock price pullback may represent an attractive entry point.