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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Why Trust Cryptonews
Japan-based investment firm Metaplanet and the government of El Salvador increased their Bitcoin holdings ahead of a significant market downturn on February 25, when Bitcoin prices dropped by nearly 5% over 10 hours.
Metaplanet announced it had purchased 135 Bitcoin for approximately $13 million at an average price of $96,185.
Around the same time, El Salvador acquired 7 Bitcoin, paying roughly $94,050 per coin, according to the country’s National Bitcoin Office.
Both acquisitions occurred just before Bitcoin’s price dipped below $91,000 in the early hours of February 25.
Despite the downturn, Bitcoin has since recovered slightly, trading at $92,260. However, market sentiment has reached its lowest level in over five months.
Metaplanet’s latest purchase brings its total Bitcoin holdings to 2,225 BTC, valued at over $205 million.
With an average purchase price of $81,834 per Bitcoin, the firm, led by CEO Simon Gerovich, has achieved a 12.7% gain on its investment since adopting Bitcoin as a treasury asset in April.
The company also reported a 23.3% quarterly increase in its “BTC Yield,” bringing it closer to its 35% target for the first quarter of 2025.
According to data from BitcoinTreasuries.NET, Metaplanet ranks as the 14th largest corporate Bitcoin holder globally.
Despite the significant acquisition, Metaplanet’s share price on the Tokyo Stock Exchange (TYO: 3350) remained largely unaffected, falling 0.16% to 6,130 Japanese yen ($41.06) after the announcement.
Meanwhile, El Salvador’s purchase was notably larger than its usual strategy of buying one Bitcoin per day.
The latest acquisition brings the nation’s total Bitcoin reserves to 6,088 BTC, worth approximately $560.7 million at current prices.
The purchase was made shortly before former U.S. President Donald Trump reaffirmed plans to impose a 25% tax on imports from Canada and Mexico, a move that coincided with the broader crypto market decline.
El Salvador’s continued investment in Bitcoin comes amid negotiations with the International Monetary Fund (IMF) over a $1.4 billion financial deal.
As part of the agreement, the government has agreed to soften several Bitcoin-related policies, including removing the requirement for merchants to accept Bitcoin as payment.
Bitcoin ETFs See $357.8M Outflows Amid Crypto Market Turbulence
The broader crypto market also faced turbulence, with eight spot Bitcoin exchange-traded funds (ETFs) from seven issuers experiencing combined outflows of $357.8 million on February 24.
The Fidelity Wise Origin Bitcoin Fund was hit hardest, seeing $247 million in withdrawals, while the BlackRock iShares Bitcoin Trust recorded $159 million in outflows, according to data from Farside Investors and HODL15Capital.
It is worth noting that several U.S. states, including Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas, have also introduced bills that could enable them to hold Bitcoin and other cryptos as reserve assets.
More recently, lawmakers in Ohio introduced House Bill 116, aiming to prevent the state from imposing additional taxes on digital assets when used for payments.
