Metaplanet Stock Drops 8% as Short Positions Increase

Metaplanet, a proxy firm for Bitcoin, has seen its stock decline by 8.37% on the Tokyo Stock Exchange, marking a 70% decrease from its peak in mid-June.

Institutional Short Positions Dynamics

Morgan Stanley MUFG holds approximately 20 million shares (2.83%) short, adding 1.92 million shares recently despite trimming 768,000.
Jefferies International expanded its short position to 10.54 million shares, while UBS re-entered with 7.31 million shares.
Goldman Sachs, JP Morgan, Citigroup, and Barclays have significantly reduced their short positions.

Metaplanet stock short positions | Source: Vincent

The borrowing cost for Metaplanet stocks has surged to an annualized 54% at Interactive Brokers due to a scarcity of lendable stock, increasing the expense of shorting.

Potential Bitcoin Purchases

Metaplanet plans to raise up to 555 billion JPY ($3.8 billion) through preferred shares to reach a goal of 30,000 BTC in its Treasury by year-end.
The current correction might be viewed as an undervaluation, presenting a buy-the-dip opportunity.
Bitcoin faces resistance at $116,000, hindering upward movement.