Metaplanet, the Japanese micro-strategy platform , announced the launch of its Sponsored Level I ADR (American Depositary Receipt) program, with Deutsche Bank Trust Company of America acting as the depositary bank. Trading in US dollars on the OTC market began on December 19th, with the stock code MPJPY. Metaplanet's stock price has been declining since reaching an all-time high of 1,930 yen in June, hovering around 400 yen. Furthermore, it hasn't purchased any Bitcoin since September 30th, indicating difficulties in fundraising. Whether the ADR issuance will effectively attract more US investors and boost its sluggish stock price remains to be seen, especially since its mNAV (current stock price to the value of its Bitcoin holdings) has been hovering around 1 for some time.
Metaplanet, the Japanese version of the micro-strategy app, has released an ADR.
Metaplanet, the Japanese version of MicroStrategy, is Japan's first publicly listed "Bitcoin Treasury Reservation Company," using Bitcoin as its primary financial reserve asset. The company raises funds through stock and bond issuances to continuously increase its Bitcoin holdings, with BTC yield as its core performance indicator.
Metaplanet stock (3350.T) has been listed on the Tokyo Stock Exchange in Japan for many years. It began trading on the US OTCQX market on December 19, 2024, under the ticker symbol MTPLF. This is a listing form known as Foreign Ordinary Share. Both represent the same company, just traded on different markets.
To enhance accessibility and transparency of the company's stock to investors in the United States and globally, Metaplanet has signed a formal depositary agreement with Deutsche Bank to issue ADRs "MPJPY". Each ADR represents one ordinary share, addressing the settlement and liquidity limitations of existing OTC trading (ticker symbol MTPLF) and meeting the needs of institutional investors who prefer the ADR structure due to regulatory, custody, or investment compliance requirements.
ADR stands for American Depositary Receipts, which refers to stock certificates issued by companies listed outside the United States and traded on the U.S. stock exchange. ADRs do not issue new shares and do not dilute equity, similar to TSMC's ADR TSM issued in the U.S. They make it easier for U.S. investors to buy shares of foreign companies and allow foreign companies to increase their visibility and raise funds in the U.S. market.
Metaplanet is facing fundraising difficulties. Can ADRs successfully attract US funds?
Metaplanet currently holds 30,823 bitcoins, making it the world's fourth-largest publicly traded company with bitcoin reserves, after Strategy, MARA Holding, and Twenty One Capital.
However, Metaplanet's stock price has fallen to around 400 yen since hitting a record high of 1,930 yen in June, and it has not bought any more Bitcoin since September 30, indicating that it has encountered difficulties in fundraising.
( What hidden risks are lurking behind Metaplanet's reliance on Bitcoin option premiums for revenue? )
MPJPY's trading volume on its first day of trading was 66,459, with a closing price of $2.85. Its original MTPLF trading volume was 1,528,855, with a closing price of $2.78, indicating a significant difference between the two. Whether the issuance of ADRs can effectively attract more funds from US investors and boost its sluggish stock price remains to be seen, especially since its mNAV (current stock price to the value of its Bitcoin holdings) has been hovering around 1 for some time.
This article, "Can Metaplanet's ADR Issuance Successfully Attract US Funds to Save Its Stock Price?", first appeared on ABMedia .
