"Japan Firm, El Salvador Boost Bitcoin Holdings Before Market Dip"

In a significant development, Japan-based investment firm Metaplanet and the government of El Salvador both increased their Bitcoin holdings just before a market downturn on February 25. The price drop saw Bitcoin fall nearly 5% over 10 hours, dipping below $91,000 before recovering slightly to $92,260.

Metaplanet announced it had purchased 135 Bitcoin for approximately $13 million, paying an average price of $96,185 per coin. This latest acquisition brings Metaplanet’s total Bitcoin holdings to 2,225 BTC, now valued at over $205 million based on current prices. Since adopting Bitcoin as a treasury asset in April, Metaplanet has achieved a 12.7% gain on its investment. The company’s average purchase price across all its Bitcoin holdings stands at $81,834 per coin. Led by CEO Simon Gerovich, the firm also reported a quarterly increase of 23.3% in its “BTC Yield,” moving closer to its target of 35% for the first quarter of 2025.

Around the same time as Metaplanet’s purchase, El Salvador acquired 7 Bitcoin, paying roughly $94,050 per coin according to the country’s National Bitcoin Office. This purchase was larger than El Salvador’s usual strategy of buying one Bitcoin per day, a practice the country began in November 2022. The latest acquisition brings El Salvador’s total Bitcoin reserves to 6,088 BTC, worth approximately $560.7 million at current market prices. This purchase came after a one-week pause in the country’s daily buying strategy, which had been temporarily halted since February 18.

El Salvador’s continued investment in Bitcoin comes while the country is in negotiations with the International Monetary Fund (IMF) over a $1.4 billion financial deal. As part of this agreement, the government has agreed to modify several Bitcoin-related policies, including removing the requirement for merchants to accept Bitcoin as payment. The 40-month Extended Fund Facility deal with the IMF is expected to attract over $3.5 billion in additional financial support throughout the program period. Despite these policy adjustments, El Salvador’s latest purchase demonstrates its ongoing commitment to Bitcoin as a reserve asset.

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