Metaplanet issuance ADR, will it successfully attract US funds to save its stock price?

The Japanese version of MicroStrategy Metaplanet announced the establishment of Sponsored Level I ADR ( American Depositary Receipts ) plan, with Deutsche Bank Trust Company Americas acting as the depositary bank, and will start trading in US dollars on the OTC market on 12/19, with the stock ticker MPJPY. Metaplanet's stock price has been declining since it reached a historical high of 1,930 yen in June, dropping to around 400 yen, and has not purchased Bitcoin since 9/30, indicating difficulties in fundraising. Whether the issuance of ADR can effectively attract more US investor funds to pump its sluggish stock price remains to be seen, as its mNAV ( current stock price and its value of Bitcoin owned have been hovering around 1 for a long time.

Japanese version of MicroStrategy Metaplanet issuance ADR

The Japanese version of MicroStrategy, Metaplanet, is Japan's first publicly listed “Bitcoin Reserve Strategy Company” )Bitcoin Treasury Reserv Company(, which uses Bitcoin as its primary financial reserve asset. The company raises funds through the issuance of stocks and bonds, continuously increasing its Bitcoin holdings to enhance the per-share Bitcoin yield )BTC Yield( as a core performance indicator.

Metaplanet stock 3350.T has been listed on the Tokyo Stock Exchange in Japan for many years. It will begin trading on the OTCQX market in the United States on December 19, 2024, with the stock code MTPLF. It is a listing form known as Foreign Ordinary Share ) foreign ordinary share (. The two represent the same company, just traded in different markets.

In order to enhance the accessibility and transparency of the company's stock for investors in the United States and globally, Metaplanet has signed a formal custody agreement with Deutsche Bank to issue ADR “MPJPY”, with each ADR corresponding to one share of common stock, to address the limitations in settlement and liquidity of the existing OTC trading (ticker MTPLF) and to meet the needs of institutional investors who prefer the ADR structure due to regulatory, custody, or investment guidelines.

ADR stands for American Depositary Receipts ), which refers to stock certificates for companies listed outside of the United States that are traded on U.S. exchanges. ADRs do not issue new shares and do not dilute equity, similar to the ADR TSM issued by TSMC in the U.S., allowing American investors to more easily purchase stocks of foreign companies, and enabling foreign companies to increase their visibility in the U.S. market and raise funds.

Metaplanet's fundraising encounters difficulties, can ADR successfully attract American funds?

Metaplanet currently holds 30,823 Bitcoins, making it the fourth largest Bitcoin reserve publicly listed company in the world, following MicroStrategy (Strategy), MARA Holding, and Twenty One Capital.

However, Metaplanet's stock price has been on a downward trend since it reached an all-time high of 1,930 yen in June, falling to around 400 yen, and has not purchased Bitcoin since after 9/30, indicating that it has encountered difficulties in fundraising.

(Metaplanet relies on Bitcoin options premiums as a source of income, what hidden risks are there? )

On the first day of MPJPY's listing, the trading volume was 66,459, with a closing price of 2.85 USD. Its original MTPLF trading volume was 1,528,855, with a closing price of 2.78 USD, indicating that there is still a certain gap between the two. Whether the issuance of ADR will effectively attract more funds from American investors and boost its sluggish stock price remains to be seen. After all, its mNAV ( current stock price and its value in Bitcoin have both hovered around 1 for a long time.

This article discusses whether Metaplanet's issuance of ADR can successfully attract US funds to save its stock price? Originally appeared on Chain News ABMedia.