UBS Joins Morgan Stanley to Short Bitcoin DAT Metaplanet, Stock Crashes Below 600 JPY

TLDR

• UBS opened a short position of 7.31M shares against Metaplanet stock.
• Metaplanet stock dropped 8.37% Monday, closing at 591 JPY.
• Morgan Stanley holds 20M short shares, the largest short position.
• Metaplanet stock is down 39% in a month despite rising Bitcoin prices.

Japan-based Bitcoin treasury firm Metaplanet saw its stock fall sharply below 600 JPY on Monday. The drop came after UBS joined other major financial firms, including Morgan Stanley, in building large short positions against the company’s stock.

Major Financial Institutions Increase Short Positions

UBS AG has opened a new short position against Metaplanet, totaling 7.31 million shares. This move adds to growing pressure on the Tokyo-listed Bitcoin digital asset treasury (DAT) company, whose stock has dropped more than 8% in a single day.

Morgan Stanley MUFG remains the largest short position holder, with a total of 20 million shares. The firm recently added another 1.92 million shares to its short position. Separate trading desks under Morgan Stanley also reported holding 17.68 million in short shares, with a small decrease of 768,000 shares.

Jefferies International holds the second-largest short position in Metaplanet. It currently holds 10.54 million short shares, having added 1.88 million shares recently. These figures reflect growing institutional bearishness towards the company’s stock.

Other Firms Also Involved in Shorting

Other well-known financial institutions have also taken short positions on Metaplanet. These include JPMorgan Securities, Citigroup Global Markets, Barclays Capital Securities, and Goldman Sachs.

Some of these firms have started reducing their short exposure. Goldman Sachs, JPMorgan, Citi, and Barclays have trimmed their positions, but still maintain exposure.

The surge in short interest suggests many large firms expect further downside in Metaplanet’s stock. This comes as the company seeks to raise funds through equity sales, which could dilute existing shares.

Metaplanet’s Stock Drops Below Key Level

Metaplanet’s stock fell to 591 JPY at the close of trading on Monday. This marks a sharp 8.37% drop from the previous trading day. The stock touched a 24-hour low of 546 JPY and a high of 612 JPY.

According to Yahoo Finance, the stock has dropped 39% in the past month. Its year-to-date return now stands at 69%, down from much higher levels seen earlier in the year.

Institutional Short Positions in Metaplanet

The U.S.-listed shares under the ticker MTPLF have also shown a steady decline. Last week, MTPLF dropped 8.90%, bringing its monthly losses to nearly 28%. The YTD return has now decreased to 91%, down from over 510% earlier in the year.

Company in Silent Period Ahead of Fundraising

Metaplanet is currently in a silent period until September 17. During this time, the firm is not making public statements or engaging with shareholders. The company plans to respond to questions and concerns after this period ends.

The firm also has plans to raise $1.4 million to increase its Bitcoin holdings. Metaplanet aims to hold 30,000 BTC by the end of 2025. The strategy involves converting raised funds into Bitcoin, even as its equity value sees pressure from large institutional short positions.

Rising short positions and falling share prices come as Metaplanet moves forward with its Bitcoin treasury growth strategy. The firm remains one of the few in Japan pursuing Bitcoin as a core asset. However, increased market skepticism and ongoing short activity could continue to weigh on its stock in the near term.

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