Metaplanet Bolsters Bitcoin Investment with $2.3M as Prices Dip Below $55K
Written by Shalini Nagarajan
Last updated:
July 8, 2024, 03:08 EDT
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1 min read
Japanese investment firm Metaplanet revealed on Monday that it has acquired an additional 42.47 Bitcoin, valued at $2.3m.
This latest purchase follows Metaplanet’s acquisition of Bitcoin worth $1.2m last week, marking its fifth Bitcoin purchase in the past four months. This brings the firm’s total holdings to over 203 BTC, valued at approximately 2 billion Yen (over $11m).
In an official statement, Metaplanet stated that it paid an average price of around $58,500 per Bitcoin for all its recent purchases.
Decline in Bitcoin Price Due to Government Sales and Election Uncertainty
Metaplanet’s announcement comes amidst Bitcoin’s price falling below the $55,000 threshold to $54,576. The cryptocurrency was last traded at around $55,598. The increased selling from miners and long-term holders, including the German and US governments, appears to be contributing to the downward pressure on Bitcoin’s price.
Furthermore, the payments made to Mt. Gox creditors are also adding to the pressure. Additionally, the upcoming US election may be causing a decline in the price.
“The possibility of Biden being replaced by a stronger Democratic candidate, who may not support cryptocurrencies, is one of the factors behind the decline,” stated Digital Asset Capital.
Metaplanet’s Bitcoin Treasury Strategy Boosts Company Stock
Metaplanet, often referred to as “Asia’s MicroStrategy,” announced that its Bitcoin holdings, which are intended for long-term retention, will be recorded at their acquisition cost. These holdings are exempt from taxation based on end-of-term market value assessments.
The company made the decision to add Bitcoin to its treasury in April as a means to diversify away from the weak Japanese yen. The low-interest rates in Japan have negatively impacted the yen, and Metaplanet views Bitcoin as a hedge against inflation, a way to increase resilience to economic troubles, and a solid long-term investment. This adoption of Bitcoin has already resulted in a boost to Metaplanet’s stock price.
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