Metaplanet Bolsters Bitcoin Investment with $2.3M Amidst Price Drop Below $55K
By Shalini Nagarajan
Updated: July 8, 2024, 03:08 EDT
Japanese investment company, Metaplanet, announced on Monday that it has acquired an additional 42.47 Bitcoin, valued at $2.3 million.
This recent purchase follows Metaplanet’s previous acquisition of Bitcoin worth $1.2 million last week, making it the fifth Bitcoin purchase in the last four months. As a result, the company’s total holdings now amount to over 203 BTC, valued at approximately 2 billion Yen (over $11 million).
According to a statement from Metaplanet, the average price paid for each Bitcoin in their recent purchases was around $58,500.
Bitcoin Price Decline Attributed to Government Sales and Election Concerns
Metaplanet’s announcement comes at a time when the price of Bitcoin has fallen below the $55,000 mark, reaching $54,576. The cryptocurrency was last traded at approximately $55,598. The downward pressure on Bitcoin’s price seems to be stemming from increased selling by miners and long-term holders, including the German and US governments.
Furthermore, the ongoing payments to Mt. Gox creditors are also contributing to the downward pressure, along with concerns surrounding the US election. Market analysts from Digital Asset Capital suggest that the potential replacement of President Biden by a stronger Democratic candidate who may not support cryptocurrencies is one of the factors behind the price decline.
Metaplanet’s Bitcoin Treasury Strategy Boosts Company Stock
Metaplanet, often referred to as “Asia’s MicroStrategy,” has revealed that its Bitcoin holdings, 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 decision to add Bitcoin to its treasury was made by the company in April as a means to diversify away from the weakening Japanese yen. Low-interest rates in Japan have negatively impacted the yen, and Metaplanet views Bitcoin as a hedge against inflation, a way to enhance resilience in times of economic troubles, and a solid long-term investment. The move to Bitcoin has already had a positive impact on Metaplanet’s stock price.
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