Metaplanet Picks Up Record 620 Bitcoin as XRP Leads Market Slide

What to know:

As a seasoned crypto investor with over a decade of experience in this dynamic market, I have learned that patience and a keen eye for trends are crucial when navigating these volatile waters. The recent 3% drop in XRP, coupled with the broader market decline, has caught my attention, but it’s not enough to sway me from my long-term strategy.

Over the last 24 hours, XRP experienced a 3% decrease, with notable losses among leading cryptocurrencies. Bitcoin (BTC) initiated the holiday season by slipping into the negative, while Japanese bitcoin amassing entity Metaplanet (3350) declared its largest acquisition yet.

The Tokyo-based company announced they had purchased an unprecedented 619.70 Bitcoin for approximately 9.5 billion yen, equivalent to around $61 million USD. This acquisition increased their Bitcoin holdings by nearly 54%.

Over the past 24 hours, Bitcoin (BTC) has dropped by approximately 1.5%, according to CoinGecko data. Meanwhile, Ether (ETH), Cardano‘s ADA, Solana’s SOL, and Dogecoin (DOGE) have all decreased by up to 2%. Conversely, Chainlink’s LINK and Tron’s TRX experienced gains, while the CoinDesk 20 (CD20) index declined by 1.39%.

Metaplanet recently purchased 1,762 Bitcoins at a total cost of approximately $133.2 million or 20.87 billion yen, with each Bitcoin averaging around 11.85 million yen. Over the period between October 1 and December 23, this investment has yielded a return of 309.82%, significantly higher than the 41.7% growth seen between July 1 and September 30.

As an analyst, I’ve observed that Metaplanet has been innovating its approach to financing Bitcoin purchases since April. On December 20, the company issued a fifth series of 5 trillion yen Ordinary Bonds to EVO FUND. This is a zero-coupon bond, maturing on June 16, 2025, with an early redemption option linked to the acquisition rights of its 12th stock series.

Over the course of the year, the company has made a total of 19 distinct bitcoin purchases using funds from capital market activities and operational earnings. These transactions have propelled the company’s shares to surge an astonishing 2,100% this year, resulting in it being ranked as the 15th largest publicly traded holder of bitcoins.

Meanwhile, market watchers are cautious ahead of the holiday period with a short-term bearish bias.

Alex Kuptsikevich, FxPro’s chief market analyst, shared with CoinDesk via email that markets are currently processing the Federal Reserve’s more stringent stance. This is further supported by traders wanting to secure their profits following a robust year. Bitcoin is currently trading at approximately $95.5K and has found support close to its 50-day moving average on both Friday and Monday. Despite anticipating a market drop at this point, it’s premature to conclude that the correction has ended completely.

Continued drops in Bitcoin and Ethereum‘s stock market may prompt institutional investors to act, potentially causing a more significant downturn. The reduced trading activity during holidays might increase this volatility, possibly leading to a dip around $70K. Kuptsikevich also mentioned that the $90,000 mark could be an appealing price point for buyers to halt the sell-off.

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2024-12-23 15:55