In a significant development for the cryptocurrency market, Japanese investment firm Metaplanet and the crypto-advocating nation of El Salvador both announced substantial purchases of Bitcoin on Monday, coinciding with a shift in market sentiment. The Bitcoin Fear & Greed Index, after a consecutive streak in the “fear” category, has reached the “neutral” zone, suggesting a change in investor sentiment.
Metaplanet disclosed that it acquired an additional 136 Bitcoin (BTC), which raises its total holdings to 20,136 BTC, valued at over $2.2 billion at current market rates. The company’s CEO, Simon Gerovich, had previously stated a long-term aim of amassing 210,000 Bitcoin by the year 2027. If achieved, this ambition would position Metaplanet as the second-largest holder of Bitcoin among publicly traded companies, following Strategy, according to data provided by Bitbo. Presently, Metaplanet ranks as the sixth-largest Bitcoin treasury, securing its place as the leading Japanese entity in this domain out of 186 firms tracked. The average purchase price for the new Bitcoin was approximately 16,554,535 Japanese yen, equivalent to $111,830 per coin.
While Metaplanet’s initial Bitcoin announcement on July 22, 2024, led to a 19% surge in its stock price, the subsequent announcements have not resulted in the same positive momentum. In the most recent trading session, shares fell nearly 3% to $4.65, although they remain up 92.45% year-to-date. Compounding the situation, Metaplanet has outlined plans to raise an additional $880 million through a public share offering in overseas markets, scheduled for August 27, amid challenges to its capital-raising efforts following the decline in stock price.
On the other hand, El Salvador’s President Nayib Bukele declared on Monday that the nation purchased another 21 Bitcoin, as a commemorative gesture for “Bitcoin Day.” This purchase adds to the country’s total Bitcoin holdings, which now stand at 6,313 BTC. The announcement marks the celebration of the anniversary since Bitcoin was designated as legal tender in the nation, a policy that came into effect in September 2021. Contrarily, a recent report from the International Monetary Fund (IMF) suggested that El Salvador had not acquired any new Bitcoin since it entered a $1.4 billion loan agreement in December 2024, which reportedly necessitated a reduction in purchases.
Additionally, Michael Saylor, the executive chairman of Strategy, hinted at further Bitcoin acquisitions on Sunday, sharing a screenshot of the company’s Bitcoin portfolio on X with a caption suggesting the need for more Bitcoin. Strategy currently stands as the largest corporate holder of Bitcoin, boasting a total of 636,505 BTC. Following a volatile August, the stock price for Strategy recently saw a modest increase of 2.5%, trading at $335.87, while still reflecting an approximate 12% gain year-to-date.
Market analysts note that the return of the Fear & Greed Index to a neutral position may indicate a potential stabilization in Bitcoin prices following a turbulent period. The fluctuations and movements from both Metaplanet and El Salvador underline the evolving landscape of cryptocurrency investments and regulatory considerations for countries embracing Bitcoin as a fundamental aspect of their economies.
