In a move indicative of growing corporate confidence in Bitcoin, Tokyo-listed Metaplanet has once again increased its BTC reserves, with a recent acquisition pushing their total holdings past the $10 million mark.
This purchase coincides with Bitcoin’s positive start to July, as the cryptocurrency begins to recover recently lost gains. Bitcoin is currently trading above $63,000, marking a nearly 3% increase in the past day.
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Metaplanet Expansion to Bitcoin
Earlier today, Metaplanet made headlines by acquiring an additional 20,195 Bitcoins, valued at approximately $1.2 million, as announced shortly after the market close on the Tokyo Stock Exchange.
This acquisition is part of a larger strategy, previously stated on June 24, that involves a significant allocation of capital to Bitcoin. through future bond issues.
This latest transaction not only represents its first purchase using the securities process, but also brings Metaplanet’s total Bitcoin holdings to approximately 161.2677 BTC, worth approximately $10.1 million, showing an optimistic stance on the future of this main cryptocurrency.
The purchase price, averaging $63,427 per Bitcoin, underscores the bold plan to invest in Bitcoin regardless of fluctuating market conditions. Notably, the implications of such significant investments by publicly traded companies are quite varied.
First, it reinforces Bitcoin’s legitimacy as an investment asset, encouraging other companies to consider similar ventures. For example, before Metaplanet’s plan to start buying BTC, Microstrategy had already been doing so for a long time, bringing its total BTC holdings to more than 226 thousand BTC since today.
Secondly, these acquisitions may influence market sentimentpotentially stabilizing prices or even raising prices due to reduced supply in the market.
Are Current BTC Recovery Signs Further Increasing?
Along with Metaplanet’s investment, the Bitcoin market itself is showing signs of recovery. The cryptocurrency has recently seen a Increase of 2.6%with prices recovering above the $63,000 threshold.
This resurgence is supported by comments from Credible Crypto, a prominent analyst in the sector, who points that the critical zone of $63-64K could herald a new bullish phase for Bitcoin if recovered effectively.
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The analyst further comments on the importance of this price level, suggesting that a confirmed breakout could signal that a bottom is in place, setting the stage for a potential recovery.
Zooming in a bit, and as explained in my last Youtube video, the 63-64k zone on RED is the key region that needs to be claimed again for confirmation that our bottom may be in and that we may be seeing a scenario like the one below.
Just like it was in our 38k fund, a break of… https://t.co/9jvJ3Iq9UU pic.twitter.com/1mH93c1SL0
– CrediBULL Crypto (@CredibleCrypto) June 30, 2024
Additionally, broader market trends provide additional context. CryptoQuant CEO Ki Young Ju grades the current low market volatility as an opportune moment for whales to accumulate BTC, reinforcing an optimistic outlook for the continuation of the cycle.
Similarly, analysts like Daan Crypto Trades have noted. substantial purchase bids accumulating below the spot price, indicating strong support levels that could prevent further significant downturns.
Featured image created with DALL-E, chart from TradingView