Metaplanet and El Salvador Stack Bitcoin Amid Market Downturn

Despite Bitcoin’s latest price drop, both Metaplanet and El Salvador doubled down on their BTC holdings, adding to their reserves just before the market experienced a sharp decline. The Japanese investment firm Metaplanet acquired 135 BTC for $13 million at an average price of $96,185 per coin, while El Salvador expanded its Bitcoin treasury by purchasing 7 BTC at around $94,050.

Their acquisitions came just ahead of a broader market downturn, with Bitcoin plunging below $91,000 in the early hours of February 25. As of now, BTC is trading near $89,000, with investor sentiment at its lowest in over five months.

Metaplanet’s Bitcoin Strategy

Metaplanet’s latest buy pushes its total Bitcoin holdings to 2,225 BTC, currently valued at over $205 million. The firm, led by Simon Gerovich, has been aggressively accumulating Bitcoin since April, maintaining an average purchase price of $81,834 per BTC. This strategy has resulted in a 12.7% unrealized gain on its Bitcoin investment so far.

More importantly, Metaplanet highlighted its “BTC Yield” metric—measuring the percentage change in Bitcoin holdings relative to its diluted shares—which is up 23.3% this quarter. The firm is on track to meet its ambitious target of 35% BTC Yield growth per quarter, signaling confidence in its Bitcoin-centric treasury strategy.

El Salvador Also Steps In

El Salvador’s latest 7 BTC purchase marks a slight increase from its usual strategy of buying 1 BTC per day. The country’s Bitcoin investment strategy remains steady, with its total holdings now at 6,088 BTC, worth approximately $560.7 million at current prices.

However, El Salvador’s continued Bitcoin accumulation comes as it navigates conditions set by the International Monetary Fund (IMF) as part of a $1.4 billion financial agreement. Among the IMF’s requirements, the country has agreed to scale back certain Bitcoin-related policies, including the mandate that all merchants must accept BTC as payment.

Meanwhile, spot Bitcoin ETFs saw significant outflows on February 24, with eight funds from seven issuers losing a combined $357.8 million. The Fidelity Wise Origin Bitcoin Fund took the biggest hit with a $247 million outflow, followed by BlackRock’s iShares Bitcoin Trust, which saw $159 million in withdrawals.