Benchmark lowers Metaplanet's target price to 1100 yen from a high of 2400 yen, significantly pulling back.

Japan’s leading Bitcoin investment company Metaplanet recently faced a reassessment of its investment outlook. Renowned investment bank Benchmark sharply lowered its target stock price from 2,400 yen to 1,100 yen, a nearly 54% decline, marking a significant adjustment in expectations. Notably, despite the downward revision of the target price, Benchmark maintained a buy rating on Metaplanet, implying underlying market logic.

Target Price Cut from 2,400 Yen to 1,100 Yen Sparks Financial Evaluation Changes

According to NS3 reports, Benchmark’s adjustment is not based on deteriorating fundamentals but rather a more rational revaluation. Metaplanet’s latest financial report shows strong revenue performance with significant growth. However, behind this seemingly impressive financial performance lies a core loss pressure—due to a sharp decline in Bitcoin asset valuation amid market volatility, which directly dragged down the company’s net profit, resulting in a much larger net loss compared to the period when the 2,400 yen target was set.

The Contradiction of Revenue Growth and Increasing Losses: Bitcoin Fluctuations as a Double-Edged Sword

This phenomenon of revenue growth alongside expanding losses deeply reflects Metaplanet’s unique characteristics as a Bitcoin investment company. The company’s revenue growth mainly stems from business expansion and operational efficiency improvements, but net profit is directly affected by changes in the fair value of Bitcoin holdings. When Bitcoin’s valuation faces downward pressure, the company’s book net assets and profitability are also impacted, which is the primary reason Benchmark lowered the target price. In this context, the adjustment in the target price is essentially a more cautious pricing of Bitcoin price fluctuation risks.

The Deeper Meaning of Maintaining a Buy Rating: Preferred Stock Issuance as a Key Investment Factor

Despite the significant reduction in the target price, Benchmark still maintains a buy rating, indicating that the investment bank remains optimistic about Metaplanet’s long-term prospects. The key lies in investor interest in the company’s planned issuance of preferred shares related to its Bitcoin asset management program, which will directly influence the company’s future financing capacity and valuation recovery potential. Once the preferred stock financing is implemented, it will provide Metaplanet with more flexible capital structure adjustment space, helping to alleviate short-term loss pressures and laying a foundation for future growth.