A Japanese investment company, Metaplanet, recently made its largest individual purchase, 620 Bitcoin (BTC), for $60 million. The transaction was executed when Bitcoin hovered near the $96,000 per coin level, thus allowing Tokyo-based companies to capitalize on the recent dip. This purchase increased Metaplanet's October acquisition of 159.7 BTC and brought its total acquisition to 1,762 BTC, equivalent to $168 million.
The firm has adopted Bitcoin as a core element of its growth strategy, generating significant yields from its cryptocurrency operations. BTC yield also increased significantly from October to December, increasing to 310% from 41.7% in the previous quarter. The firm's focus on Bitcoin-related activities has also contributed to its financial revival, where the total revenues for the fiscal year were estimated to be 890 million yen ($5.8 million), a sharp rise from the previous year's 261 million yen.
Metaplanet released two zero-interest bonds in December to support its planned Bitcoin acquisitions and hold 9.5 billion yen ($60.6m). These bonds, with a due date in June 2025, are intended for putting into future acquisitions and further development of crypto activities.
Metaplanet stock has grown by 5% on the Tokyo Stock Exchange, particularly after the announcement of the bonds. Nevertheless, shares are still below 13% for the week but are up over 2100% of the year level, reflecting investor optimism about the firm's Bitcoin adoption strategy.
The company's CEO, Simon Gerovich, explained his plans to advance Bitcoin purchases to achieve 2025 targets within the current fiscal year, evidencing long-term strategic investments.
Currently, at $95,000 per token, Bitcoin's value has depreciated 12% from its all-time high of $108,353. This drop followed the U.S. Federal Reserve's announcement, signaling fewer interest rate cuts in 2025. Institutional activity in Bitcoin has shown mixed trends, with spot Bitcoin ETFs witnessing $950 million in outflows last week after an initial $1.4 billion inflow.
Despite the market's volatility, institutions, including Metaplanet and the government of El Salvador, have continued to increase their Bitcoin holdings. El Salvador added 29 BTC to its reserves, bringing its total to 5,995 BTC, valued at over $560 million.
Bitcoin's technical indicators remain largely positive. The Relative Strength Index (RSI) reads 67, and the Moving Average Convergence Divergence (MACD) shows bullish momentum. Analysts identify $100,000 as a potential resistance level, with support zones around $81,500 to $89,376 if corrections persist.