Metaplanet and El Salvador Expand Bitcoin Holdings Before Market Decline

Two major Bitcoin holders increased their positions just before a market downturn on February 25, 2025. Metaplanet, a Japan-based investment company, and the government of El Salvador both added to their Bitcoin reserves right before prices tumbled nearly 5% in a 10-hour period.

Metaplanet officially announced a purchase of 135 Bitcoin, spending approximately $13 million at an average price of $96,185 per coin. This latest buy brings their total holdings to 2,225 Bitcoin, currently worth more than $205 million according to current market rates.

The investment firm, under the leadership of CEO Simon Gerovich, has seen its Bitcoin investment grow by 12.7% since it began adding the cryptocurrency to its treasury in April. Metaplanet’s average purchase price across all its Bitcoin acquisitions stands at $81,834 per coin, putting the company in a favorable position despite the recent market volatility.

Data from tracking website BitcoinTreasuries.NET now places Metaplanet as the 14th largest corporate Bitcoin holder worldwide. The company also reported a 23.3% quarterly increase in what it terms “BTC Yield,” bringing it closer to its 35% target for Q1 2025.

Interestingly, the Tokyo Stock Exchange didn’t react strongly to Metaplanet’s Bitcoin purchase. The company’s share price (TYO: 3350) fell by only 0.16% to 6,130 Japanese yen (about $41.06) following the announcement.

At around the same time, El Salvador made a purchase of 7 Bitcoin, paying approximately $94,050 per coin according to reports from the country’s National Bitcoin Office. This acquisition was larger than the nation’s typical strategy of buying just one Bitcoin daily, a practice it began in November 2022 but paused on February 18.

El Salvador now holds a total of 6,088 Bitcoin in its national reserves, valued at roughly $560.7 million at current prices. This continued commitment to Bitcoin comes while the Central American nation is working with the International Monetary Fund (IMF) on a $1.4 billion financial agreement.

Bitcoin Market Faces Strong Headwinds

The cryptocurrency market experienced widespread turbulence during this period. Eight major spot Bitcoin exchange-traded funds (ETFs) recorded combined outflows of $357.8 million on February 24, according to data compiled by Farside Investors and HODL15Capital.

Fidelity’s Wise Origin Bitcoin Fund was hit hardest with $247 million in withdrawals, while BlackRock’s iShares Bitcoin Trust saw outflows of $159 million. These movements highlight growing investor caution in the current market environment.

The market downturn seemed to coincide with former President Donald Trump’s announcement of plans to implement a 25% tax on imports from Canada and Mexico. Following this news, Bitcoin experienced what traders call a “flash drop,” triggering over $950 million in leveraged position liquidations across various cryptocurrency trading platforms.

Despite these market challenges, El Salvador has maintained its long-term Bitcoin strategy. As part of its IMF agreement, the country has modified some Bitcoin-related policies, including making Bitcoin acceptance optional for businesses rather than mandatory. The country’s legislature approved these changes to its Bitcoin law in January 2025.

The 40-month Extended Fund Facility deal with the IMF is expected to bring in over $3.5 billion in additional financial support throughout the program. Rather than abandoning its Bitcoin strategy as some analysts predicted, El Salvador has continued making strategic purchases, including a $1 million Bitcoin buy in December following the IMF deal announcement.

While market sentiment for Bitcoin has reached its lowest point in over five months, there are signs of growing institutional interest. Ten U.S. states including Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas have introduced legislation that could allow them to hold Bitcoin and other digital assets as reserve assets.

In Ohio, lawmakers recently introduced House Bill 116, which aims to prevent additional taxation on digital assets when used for payments. This represents part of a broader trend of increasing government interest in cryptocurrency adoption and regulation.

The recent purchases by Metaplanet and El Salvador suggest that major holders are taking advantage of price dips to increase their positions, following a “buy the dip” strategy common among long-term Bitcoin investors. Despite short-term volatility, both entities appear to be focusing on the potential long-term value of their Bitcoin reserves.

Market data indicates that Bitcoin has recovered slightly since the initial drop, trading at around $92,000 at the time of writing. This represents a 4% decrease over 24 hours according to cryptocurrency price tracking site CoinGecko, but still reflects a partial recovery from the sub-$91,000 lows reached earlier.

El Salvador has made several large Bitcoin purchases outside of its daily acquisition strategy in recent months. Beyond the recent 7 Bitcoin purchase, the country added Bitcoin worth $1 million to its reserves in December and acquired 11 Bitcoin valued at over $1 million on February 4.

While the cryptocurrency market continues to experience volatility, the actions of institutional investors and nation-states like El Salvador will likely remain key factors influencing Bitcoin’s price movements and market sentiment in the months ahead.