Metaplanet Bolsters Bitcoin Portfolio with $2.3M Amid Price Drop

Metaplanet Increases Bitcoin Holdings with $2.3M Purchase

Japanese investment firm Metaplanet announced on Monday the acquisition of an additional 42.47 Bitcoin, worth $2.3 million. This follows last week’s $1.2 million purchase, marking the company’s fifth Bitcoin acquisition in four months. Metaplanet now holds over 203 BTC, valued at approximately 2 billion Yen (over $11 million). The firm stated that it paid an average of $58,500 per Bitcoin for its recent purchases.

Bitcoin Price Falls Below $55,000

The announcement coincides with a drop in Bitcoin’s price to $54,576, after previously trading at around $55,598. Increased selling from miners, long-term holders, and government sales, particularly from Germany and the US, are contributing to the downward pressure on Bitcoin’s price. Payments to Mt. Gox creditors and uncertainties surrounding the upcoming US election, where a stronger Democratic candidate might replace President Biden and potentially oppose cryptocurrencies, are also influencing the price decline, according to Digital Asset Capital.

Metaplanet’s Strategy and Impact on Stock Prices

Dubbed “Asia’s MicroStrategy,” Metaplanet plans to record its Bitcoin holdings at their acquisition cost, exempt from end-of-term market value assessments, thus avoiding taxation based on market fluctuations. The company began incorporating Bitcoin into its treasury in April as a diversification strategy against the weakening Japanese yen. With Japan’s low-interest rates impacting the yen, Metaplanet views Bitcoin as a hedge against inflation and a solid long-term investment. This strategic shift to Bitcoin has already positively impacted Metaplanet’s stock price.