Metaplanet Strengthens Its Bitcoin Strategy amid Ongoing BTC Correction below $96k

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As a seasoned researcher with years of experience tracking the cryptocurrency market, I find Metaplanet Inc’s Bitcoin acquisition strategy intriguing and indicative of a growing institutional FOMO (Fear Of Missing Out). The company’s decision to invest heavily in Bitcoin not only strengthens its balance sheet but also bolsters its stock market performance.

Metaplanet Inc., a Japanese hotel management firm, has recently purchased a substantial amount of Bitcoin to bolster its financial position and stock market standing. As per the announcement made on December 23rd, Metaplanet has acquired approximately 619.7 Bitcoins, bringing their total holdings to around 1,761.98 BTC, valued at over ¥20 billion. The Bitcoin purchased today is worth about $95,897 per unit, with a 24-hour volatility of 1.4%, and the market cap stands at approximately $1.9 trillion, with a 24-hour volume of $42.16 billion.

The business pointed out that its Bitcoin investments have significantly boosted its performance on the stock exchange. Between July 1, 2024, and September 30, 2024, the company’s Bitcoin return was an impressive 41.7%. During the subsequent period from October 1, 2024, to December 23, 2024, the company’s Bitcoin returns soared even higher at 309.82%.

Over the course of this year, I’ve witnessed an astounding surge in Metaplanet’s stock market value. Currently, it trades at approximately ¥3,540, marking a staggering increase of more than 20 times its original value. Remarkably, this Bitcoin-centric startup has managed to escalate its valuation close to ¥130 billion, even without a major product available in the market.

Metaplanet has been making use of worldwide financial markets to reinforce its Bitcoin approach in a way similar to MicroStrategy Inc (NASDAQ: MSTR). Recently, it was announced that OTC Markets Group Inc (OTCQX: OTCM) will list Metaplanet’s stock market under the ticker MTPLF.

Consequently, Metaplanet will persist in offering additional shares globally with the aim of acquiring more Bitcoins. Earlier this year, they unveiled a 10-for-1 share consolidation to boost their market fluidity.

Metaplanet’s Bitcoin Strategy Signals Ongoing Institutional FOMO

The interest in Bitcoin has skyrocketed since Donald Trump’s recent victory and the rise of pro-cryptocurrency figures in the U.S., as indicated by Coinglass’s analysis of on-chain data. Over the past two months, the amount of Bitcoin stored on centralized exchanges has dropped by over 200,000, leaving approximately 2.24 million Bitcoins in circulation at this moment.

Beyond institutional investors like Metaplanet and MicroStrategy buying Bitcoins, U.S. spot Bitcoin Exchange-Traded Funds (ETFs) have been significant contributors of investment capital. As per recent market figures, these U.S. spot Bitcoin ETFs have amassed over $109 billion in Bitcoin within a single year, with BlackRock’s IBIT taking the lead.

Even as El Salvador moves forward with its Bitcoin buying plans, it’s important to note that this decision comes amidst agreeing to a $1.4 billion loan from the IMF, which comes with certain conditions.

BTC Price Prepares for Another Bullish Breakout

Over the last few days, the price of Bitcoin has been testing a significant support area, roughly between $93,806 and $97,041, after dropping below an important psychological threshold of approximately $100,000. To prevent a possible drop to around $70K from a technical perspective, it is crucial for Bitcoin’s price to bounce back above the support level near $93,000.

#Bitcoin $BTC will hit a market top above $168,500, based on the Mayer Multiple.

— Ali (@ali_charts) December 22, 2024

Nonetheless, crypto analyst Ali Martinez believes that Bitcoin price is preparing for a new bullish rebound beyond $168K.

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2024-12-23 13:45