Expanding Bitcoin Investments: El Salvador and Metaplanet Seize Opportunity
As Bitcoin’s value dropped to a three-month low below $90,000, El Salvador and Tokyo-listed Bitcoin treasury firm Metaplanet saw this as an opportunity to expand their investments in the leading cryptocurrency.
El Salvador Boosts Bitcoin Reserves
El Salvador’s President Nayib Bukele announced on Feb. 24 that the country had acquired an additional 7 BTC, valued at around $614,000. This purchase increased El Salvador’s Bitcoin holdings to 6,088 BTC, approximately valued at $541 million based on current market rates.
Pausing Daily Purchase Strategy
El Salvador paused its daily Bitcoin purchase strategy last week, raising speculation about the country’s intentions. Since November 2022, El Salvador had been consistently buying one Bitcoin each day. However, the recent purchase on Feb. 18 was the last before the acquisition of 7 BTC, leading to rumors of pressure from the International Monetary Fund (IMF) to reduce BTC exposure.
President Bukele’s announcement on X, captioned with “O ye of little faith,” silenced skeptics and reinforced the nation’s commitment to its Bitcoin strategy despite external pressures.
Metaplanet’s Bitcoin Acquisition
Metaplanet also took advantage of the price drop by acquiring 135 BTC worth about ¥1.9 billion ($12.9 million) at an average price of ¥14.3 million ($95,961) per Bitcoin. This increased Metaplanet’s total Bitcoin holdings to 2,235 BTC from 1,761 BTC at the end of 2024.
Maximizing Bitcoin Yield
Metaplanet CEO Simon Gerovich emphasized the company’s focus on maximizing Bitcoin yield, targeting a 35% quarterly yield in 2025. The firm has already achieved a cumulative yield of 23.2% this quarter.
This acquisition aligns with Metaplanet’s goal of amassing 10,000 BTC by the close of 2025 and 21,000 BTC by the end of the following year.
Stock Performance
Despite strategic Bitcoin investments, Metaplanet’s stock has shown little positive movement, recording a decline of over 3.2% based on data from Google Finance.
