Metaplanet, a Japanese investment firm, announced on Monday that it had acquired an additional 42.47 Bitcoin valued at $2.3 million.
Metaplanet’s fifth Bitcoin acquisition in the past four months, this acquisition follows its $1.2 million Bitcoin acquisition last week. This increases its total holdings to over 203 BTC, valued at approximately 2 billion Yen (over $11m).
Metaplanet stated that it paid an average of approximately $58,500 per Bitcoin for all of its most recent purchases.
Government Sales, Election Jitters Drag Down Bitcoin Price
Bitcoin’s price plummeted from $55,000 to $54,576, prompting the company to announce. The cryptocurrency’s most recent trading price was approximately $55,598.
The downward pressure on Bitcoin’s price appears exacerbated by increased selling from miners and long-term holders, such as the German and US governments.
Furthermore, the pressure is exacerbated by payments to creditors of Mt. Gox. Additionally, the price may be under duress due to the US election.
One of the factors contributing to the decline is the probability that Biden will be replaced by a more powerful Democratic candidate who may not favor cryptocurrencies, according to Digital Asset Capital.
Metaplanet’s Bitcoin Treasury Play Increases Stock Value
Metaplanet, frequently referred to as “Asia’s MicroStrategy,” has disclosed that its Bitcoin holdings, intended for long-term retention, will be recorded at their acquisition cost. Based on end-of-term market value assessments, these assets are exempt from taxation.
The organization incorporated Bitcoin into its treasury in April to diversify its portfolio from the fragile Japanese yen.
The yen has been negatively impacted by Japan’s low interest rates. Metaplanet regards Bitcoin as a long-term investment, increasing resilience to economic challenges and a hedge against inflation.
Metaplanet’s stock price has already experienced an increase as a result of this transition to Bitcoin.
