Metaplanet Increases Bitcoin Investment by $2.3M Amid Market Dip Below $55K

Metaplanet Increases Bitcoin Investment by $2.3M Amid Market Dip Below $55K

Japanese investment firm Metaplanet has significantly increased its Bitcoin holdings with a recent purchase of 42.47 Bitcoin, valued at approximately $2.3 million. This acquisition follows a $1.2 million Bitcoin purchase last week and marks Metaplanet’s fifth Bitcoin acquisition in the past four months. The firm’s total Bitcoin holdings now exceed 203 BTC, valued at over 2 billion Yen (more than $11 million).

Metaplanet stated that it paid an average price of around $58,500 per Bitcoin for these recent acquisitions.

Government Sales and Election Jitters Drag Down Bitcoin Price

Metaplanet’s announcement coincides with Bitcoin’s price dropping below the $55,000 mark to $54,576, with the cryptocurrency last trading at around $55,598. Increased selling from miners and long-term holders, including the German and US governments, has been contributing to the downward pressure on Bitcoin’s price. Payments to Mt. Gox creditors have also added to the selling pressure.

The upcoming US election is another factor impacting Bitcoin’s price. Digital Asset Capital highlighted concerns over the possibility of President Biden being replaced by a stronger Democratic candidate who may not be supportive of cryptocurrencies, contributing to the recent price decline.

Metaplanet’s Bitcoin Strategy Boosts Stock Price

Known as “Asia’s MicroStrategy,” Metaplanet announced that its Bitcoin holdings, intended for long-term retention, will be recorded at their acquisition cost and exempt from taxation based on end-of-term market value assessments. The firm decided to add Bitcoin to its treasury in April to diversify away from the weak Japanese yen.

Low-interest rates in Japan have negatively impacted the yen, prompting Metaplanet to view Bitcoin as a hedge against inflation and a resilient long-term investment. This strategic shift towards Bitcoin has already positively affected Metaplanet’s stock price.

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