Metaplanet and El Salvador Add to Bitcoin Holdings as Market Regulates
Metaplanet and El Salvador continued to expand their Bitcoin holdings just before the cryptocurrency market experienced a sharp correction on February 25, when the price of Bitcoin dropped by as much as 5% within 10 hours.
Metaplanet Buys 135 Bitcoins for $96,185 per BTC
Metaplanet, a Japan-based investment firm, announced that it has purchased an additional 135 Bitcoins worth a total of $13 million, or an average price of around $96,185 per BTC. With this latest purchase, Metaplanet's total Bitcoin holdings have increased to 2,225 BTC, or more than $205 million at current prices.
The company said its average purchase price is now $81,834 per BTC, which translates to a 12.7% increase in its Bitcoin investment since April 2024, when Metaplanet first announced its strategy of holding Bitcoin as a treasury asset.
Metaplanet also reported that its “BTC Yield” — the period-over-period change in the relationship between Bitcoin holdings and diluted shares — increased 23.3% this quarter. The company is on track to achieve its target of 35% quarterly growth in Q1 2025.
According to data from BitBo’s BitcoinTreasuries.NET, Metaplanet is now the 14th largest Bitcoin holder globally. Despite the new Bitcoin purchase, however, Metaplanet (TYO: 3350) shares on the Tokyo Stock Exchange fell 0.16% to 6,130 Japanese yen (about $41.06), according to data from Google Finance.
El Salvador Adds 7 Bitcoins to National Reserves
El Salvador continued to bolster its Bitcoin holdings by purchasing another 7 BTC on February 24 at a price of about $94,050 per BTC. The purchase marked an increase from the Central American country's usual policy of buying just 1 BTC per day.
Following the transaction, El Salvador's total Bitcoin holdings have reached 6,088 BTC, or about $560.7 million at current prices.
Notably, the additional Bitcoin purchases came just an hour before former US President Donald Trump confirmed that his plan to impose a 25% tariff on imports from Canada and Mexico was still “on track” – a move that sent shockwaves through financial and cryptocurrency markets shortly after.
In addition to continuing to accumulate Bitcoin, El Salvador has also agreed to roll back some Bitcoin-related policies as part of a $1.4 billion deal with the International Monetary Fund (IMF). One of the key provisions is that merchants are no longer required to accept Bitcoin as a payment method.
Outflows from Bitcoin Spot Funds
While Metaplanet and El Salvador are expanding their Bitcoin portfolios, the cryptocurrency market has seen a significant outflow from Bitcoin spot funds.
Data from Farside Investors shows that at least eight Bitcoin spot funds from seven issuers recorded a total of $357.8 million in outflows on February 24. The Fidelity Wise Origin Bitcoin Fund was hit the hardest, with outflows of $247 million. Meanwhile, the iShares Bitcoin Trust issued by BlackRock also recorded outflows of $159 million.
Market sentiment drops to five-month low
Although the Bitcoin price recovered to $92,260 after bottoming below $91,000 on the morning of February 25, the overall sentiment in the cryptocurrency market has fallen to its lowest level in more than five months. Factors such as global monetary policy, regulatory risks, and instability in traditional financial markets continue to put pressure on the price of Bitcoin and other digital assets.
With Metaplanet and El Salvador continuing to invest heavily in Bitcoin, the move could further cement the confidence of other institutions and countries in the long-term value of the digital asset, despite short-term market fluctuations.
