Metaplanet, El Salvador Boost Bitcoin Holdings Amid Market Drop

Metaplanet and El Salvador have both increased their Bitcoin holdings as the crypto market experienced a significant drop on February 25. Bitcoin's price fell by as much as 5% over a 10-hour period, but both entities chose to buy more of the cryptocurrency.

Metaplanet, a Japan-based firm, purchased 135 Bitcoin (BTC) for $13 million at around $96,185 per coin. This purchase brings its total Bitcoin stash to 2,225 BTC, worth over $205 million. The firm's average purchase price is $81,834, and it is currently up around 12.7% on its Bitcoin investment since April 2021, when it first announced it would embrace Bitcoin as a treasury asset.

El Salvador, the first country to adopt Bitcoin as legal tender, purchased an additional 7 BTC on February 24, around the time Bitcoin was trading at $94,050. This purchase brings its total Bitcoin holdings to 6,088 BTC, worth $560.7 million at current prices. The Central American country has been consistently investing in Bitcoin, despite agreeing to pull back several Bitcoin policies as part of a $1.4 billion deal with the International Monetary Fund.

Meanwhile, at least eight spot Bitcoin exchange-traded funds (ETFs) from seven issuers saw outflows on February 24, totaling a combined $357.8 million. The Fidelity Wise Origin Bitcoin Fund was hit hardest with an outflow of $247 million, while the BlackRock-issued iShares Bitcoin Trust saw 159 million in outflows.

Bitcoin has since rebounded to $92,260, but crypto market sentiment has dropped to its lowest level in over five months. Despite the recent market slump, both Metaplanet and El Salvador have demonstrated their commitment to Bitcoin by increasing their holdings.