El Salvador and Metaplanet, a Tokyo-listed Bitcoin treasury firm, have seized the opportunity presented by the recent drop in Bitcoin’s price to bolster their investments in the leading cryptocurrency.
The decline in Bitcoin’s value to a three-month low below $90,000 was part of a broader market downturn that led to over $1 billion in liquidation. Despite this, both El Salvador and Metaplanet saw this as a chance to expand their Bitcoin holdings.
El Salvador made headlines on February 24 when President Nayib Bukele announced that the country had acquired an additional 7 BTC, valued at around $614,000. This purchase increased El Salvador’s Bitcoin reserves to 6,088 BTC, worth approximately $541 million based on current market rates.
The announcement came after speculation arose when El Salvador halted its daily Bitcoin purchase strategy last week. The nation had been consistently buying one Bitcoin each day since November 2022, but the last purchase before the recent acquisition occurred on February 18. Rumors circulated that El Salvador might be succumbing to pressure from the International Monetary Fund (IMF) to reduce its exposure to BTC. President Bukele’s announcement on X put those rumors to rest, reaffirming the country’s commitment to its Bitcoin strategy.
Meanwhile, Metaplanet also took advantage of the price drop by acquiring 135 BTC, valued at approximately ¥1.9 billion ($12.9 million). This brought Metaplanet’s total Bitcoin holdings to 2,235 BTC, up from 1,761 BTC at the end of 2024. CEO Simon Gerovich emphasized the company’s focus on maximizing Bitcoin yield, aiming for a 35% quarterly yield in 2025. He noted that the firm had already achieved a cumulative yield of 23.2% this quarter.
Metaplanet’s strategic Bitcoin investments align with its goal of accumulating 10,000 BTC by the end of 2025 and 21,000 BTC by the following year. Despite these efforts, the company’s stock has shown minimal positive movement, with a decline of over 3.2% based on data from Google Finance.
In conclusion, both El Salvador and Metaplanet have capitalized on the recent price drop in Bitcoin to strengthen their positions in the cryptocurrency market. Their proactive approach in expanding their Bitcoin holdings showcases their confidence in the long-term potential of digital assets.