- El Salvador grows its BTC holdings to 6,088.18 despite IMF pressure, while Metaplanet acquires 135 BTC.
- Both buy as Bitcoin drops below $91,000, a three-month low.
In a week of heavy liquidations and high volatility, El Salvador and Japan’s Metaplanet reinforced their commitment to Bitcoin [BTC] by securing substantial new holdings.
While traders faced billions in forced liquidations due to heightened volatility and margin calls, these two entities remained unfazed, seeing the downturn as a buying opportunity.
El Salvador defies IMF warnings
El Salvador recently acquired 7 BTC, increasing its total holdings to 6,088.18 BTC, valued at around $543.2 million. This purchase followed a brief pause from the 18th to the 24th of February.
Despite ongoing pressure from the International Monetary Fund (IMF) to scale back its Bitcoin-related activities, El Salvador remains committed to its cryptocurrency strategy.
Source: bitcoin.gob.sv
El Salvador’s treasury has grown by 8 BTC this week and 41 BTC in the last month. The country continues its aggressive accumulation strategy.
Metaplanet expands holdings amid market volatility
Meanwhile, Metaplanet acquired 135 BTC for 1.939 billion yen, bringing its total holdings to 2,235 BTC. This purchase cements its position as the 14th largest corporate Bitcoin holder globally.
The acquisition was financed through capital raised from a 4 billion yen bond issuance via EVO FUND, mirroring the company’s strategic use of financial instruments to fuel its Bitcoin accumulation.
Metaplanet’s BTC Yield, which measures the ratio of Bitcoin holdings relative to fully diluted shares, surged from 41.7% to 23.2% over the past quarter.
It shows the firm’s aggressive approach to increasing shareholder value through Bitcoin accumulation.
Both purchases occurred before Bitcoin dropped below $91,000 in the early hours on the 25th of February.
Price declines mirror market fears
Bitcoin’s recent price drop, falling to around $89,000, adds weight to growing market concerns. The breakdown from its previous range between $90,000 and $100,000 mirrors the liquidation pressures.
Source: TradingView
Bitcoin’s current price is a three-month low, last seen in late November 2024. It marks a sharp drop from the recent peak near $100,000 but remains well above the $70,000 lows recorded in October 2024.
Earlier reports highlighted how a wave of forced liquidations, particularly in Ethereum [ETH] due to the Bybit hack, intensified market instability.
As leverage unwound, Bitcoin and Ethereum faced massive sell-offs, dragging prices lower and fueling market anxiety.
Strategic accumulation amid market instability
Despite ongoing volatility, both El Salvador and Metaplanet appear to view this price drop as an opportunity for strategic accumulation.
El Salvador’s determination to expand its Bitcoin reserves continues to defy the IMF’s recommendations, signaling a long-term belief in Bitcoin’s economic potential.
For Metaplanet, the recent acquisitions suggest a calculated approach to leveraging capital market activity.
The company’s increasing BTC Yield reflects confidence in its strategy, even as broader market pressures drive volatility and liquidations.
Their actions suggest that while traders and investors navigate heightened liquidations, these two entities are betting on Bitcoin’s long-term value—regardless of market instability.
