Tokyo-listed firm triggers GameStop-style short squeeze as hedge funds bet against Asia’s largest corporate Bitcoin holder
TL;DR: Metaplanet Inc. has become Japan’s most shorted and volatile stock, with 25% of shares outstanding borrowed by hedge funds betting against its Bitcoin treasury strategy. The company’s aggressive Bitcoin accumulation has triggered consecutive trading halts and sparked speculation of a global short squeeze reminiscent of GameStop’s 2021 rally.
Tokyo-listed Metaplanet Inc. (3350.T) has emerged as Japan’s most volatile stock, driven by an extraordinary combination of aggressive Bitcoin accumulation and unprecedented short interest from hedge funds skeptical of its cryptocurrency treasury strategy.
JUST IN: 🇯🇵 #Bitcoin treasury company Metaplanet is now Japan’s most volatile stock. pic.twitter.com/lCfpnEumGE
— Bitcoin Magazine (@BitcoinMagazine) May 23, 2025
From Hotel Operator to Bitcoin Powerhouse
Once a struggling hotel developer, Tokyo-based Metaplanet has undergone a dramatic transformation, emerging as Asia’s largest public Bitcoin (BTC) holder. Its pivot to a Bitcoin-first strategy in 2024 not only rescued the firm from financial distress but also made it Japan’s fastest-growing stock.
The company’s stock has surged over 3,600% in the past 12 months, transforming from a pandemic-battered hospitality business into what CEO Simon Gerovich calls “Japan’s MicroStrategy.”
Currently, Metaplanet holds 7,800 BTC, worth over $800 million after its latest purchase of 1,004 BTC, making it the 10th largest public Bitcoin-holding company globally and Asia’s largest corporate holder.
Extreme Volatility Triggers Trading Halts
The stock’s volatility has reached extraordinary levels in recent days. On Tuesday, trading was halted at 783 yen due to a sharp price move, and on Wednesday (May 21), the share price rocketed to its daily limit-up, closing at 933 yen before being halted again.
For the second-straight trading session, the stock has hit a circuit on the Tokyo Stock Exchange today, within just 2 minutes of starting the day’s trading. These consecutive limit-up halts have created unprecedented trading conditions, with Metaplanet becoming one of the top 3 most actively traded stocks by volume in 2025 on the Tokyo Stock Exchange.
Japan’s Most Shorted Stock Sparks Squeeze Speculation
What makes Metaplanet’s volatility particularly intense is its status as Japan’s most heavily shorted stock. The company has become the most shorted stock in Japan, with 25% of its shares outstanding borrowed by hedge funds betting against its Bitcoin-focused business model.
CEO Simon Gerovich expressed skepticism about these short positions, posting on social media: “Apparently Metaplanet is the most shorted stock in Japan. Do they really think betting against Bitcoin is a winning strategy?”
The situation has created what many analysts are comparing to the GameStop phenomenon of 2021. Analysts are comparing this to the current situation of Metaplanet as it is heavily shorted by Japanese hedge funds. Metaplanet is not a very big stock and as such does not have enough liquidity required for exit in case of a short squeeze.
Global Trading Frenzy
The Tokyo Stock Exchange trading halts have forced short sellers to seek liquidity in international markets, creating a global trading frenzy. With the TSE temporarily restricting access, short sellers have turned to OTC trading in international markets to cover their positions. However, these exchanges offer significantly lower liquidity, forcing traders to compete for a limited supply of shares, often at prices above their original short-sale levels.
The stock recorded unprecedented trading volumes on May 20, with 21.14 million shares of $MTPLF traded OTC in the U.S. Meanwhile, in Germany, the company’s DN3 stock traded 2.51 million shares with a total transaction value of €15.35 million.
Also Read: Metaplanet Acquires 1,004 Bitcoin Worth $104.6 Million in Second-Largest Purchase
Strong Financial Performance Fuels Rally
Metaplanet’s volatility isn’t purely speculative. The company reported impressive Q1 FY2025 results that have reinforced investor confidence in its Bitcoin strategy. On May 18, the firm reported a record Â¥877 million ($6M) in Q1 revenue, with a whopping 88% attributed to its Bitcoin strategy.
The company has now monetized 30 out of 58 days in 2025 via its BTC volatility strategies, while maintaining strict downside protection. This turns balance sheet volatility into a revenue source.
The firm’s Bitcoin yield strategy has been particularly successful. Metaplanet tracks a unique Bitcoin-native KPI: BTC Yield, which measures the growth in Bitcoin per diluted share, helping the company grow its Bitcoin holdings per share even as it issues new equity.
Ambitious Growth Plans Drive Future Volatility
Looking ahead, Metaplanet’s ambitious Bitcoin accumulation targets suggest continued volatility. The company has set an ambitious goal: acquiring 21,000 BTC by the end of 2026, a target that could further solidify its position as a leading corporate Bitcoin holder globally.
To fund these acquisitions, Metaplanet plans to issue 21 million shares, aiming to raise approximately $750 million, marking the largest equity capital raise for Bitcoin in Asia to date.
Expert Views on Valuation
Despite the extreme volatility, some crypto industry experts believe Metaplanet remains undervalued. BlockStream CEO Adam Back explained: “IMO @Metaplanet_JP is relatively cheap based on historic mNAV ranges, and on months to cover metric so shorting it seems like a really bad idea to me! this is the second 3350:TYO circuit-breaker limit-up day in a row, really bad timing to be short”.
Market Context: Bitcoin at New Highs
The timing of Metaplanet’s short squeeze coincides with Bitcoin’s recent price surge. Bitcoin soared past $107,700 earlier this morning during Asia trading hours, just 1% shy from its all-time high of $108,786. The document shows Bitcoin has reached new record highs above $111,000, adding fuel to the rally in Bitcoin proxy stocks.
A New Paradigm for Corporate Treasury?
Metaplanet’s transformation represents a broader trend in corporate treasury management. As a Premiere Member of BFC, Metaplanet actively shares learnings, metrics, and execution insights with other public companies exploring Bitcoin treasury adoption. Its structure is not only repeatable—it’s exportable.
The company has even integrated Bitcoin into its hospitality business, rebranding its last remaining property, the Royal Oak in Tokyo’s Gotanda district, as “The Bitcoin Hotel.” The hotel will serve as a hub for Bitcoin-related seminars and investor events.
Bottom Line: Metaplanet’s extreme volatility reflects the collision between traditional finance skepticism and Bitcoin adoption conviction. As the most shorted stock in Japan facing consecutive trading halts, it has become a real-time case study in how Bitcoin treasury strategies can create unprecedented market dynamics. Whether this ends in a massive short squeeze or a dramatic correction, Metaplanet has undeniably established itself as the most volatile stock in Japan and a bellwether for corporate Bitcoin adoption in Asia.
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