Metaplanet Boosts Bitcoin Investment by $2.3M as Prices Fall Below $55K

CryptoNews.com

2024-07-07 23:08:11

Shalini Nagarajan

Last updated:

July 8, 2024, 03:08 EDT | 1 min read

Japanese investment firm Metaplanet said on Monday that it acquired an additional 42.47 Bitcoin, valued at $2.3m.

This purchase follows Metaplanet’s Bitcoin acquisition worth $1.2m last week, marking its fifth Bitcoin purchase in the past four months. That brings its total holdings to over 203 BTC, valued at about 2 billion Yen (over $11m).

In a statement, Metaplanet says it paid an average of around $58,500 per Bitcoin for all its recent purchases.

*Metaplanet purchases additional 42.47 $BTC* pic.twitter.com/dPotWszW1Y

— Metaplanet Inc. (@Metaplanet_JP) July 8, 2024

Government Sales, Election Jitters Drag Down Bitcoin Price

The firm’s announcement comes as Bitcoin’s price dropped below the $55,000 mark to $54,576. The cryptocurrency last traded at about $55,598. Increased selling from miners and long-term holders, including the German and US governments, seems to be adding to downward pressure on Bitcoin’s price.

Additionally, payments to Mt. Gox creditors are contributing to the pressure. Further, the US election might be contributing to the downward pressure on the price.

“The likelihood of Biden being replaced by a stronger Democratic candidate, who may not be supportive of cryptocurrencies, is one of the factors behind the decline,” said Digital Asset Capital.

Metaplanet’s Bitcoin Treasury Play Boosts Stock

Metaplanet, often referred to as “Asia’s MicroStrategy,” announced 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 firm decided to add Bitcoin to its treasury in April to diversify away from the weak Japanese yen.

Low-interest rates in Japan have hurt the yen, and Metaplanet sees Bitcoin as a hedge against inflation, a way to be more resilient to economic troubles, and a good long-term investment. This switch to Bitcoin has already boosted Metaplanet’s stock price.

BTC-3,42%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.