Metaplanet and El Salvador Expand Bitcoin Holdings

Strategy’s Michael Saylor also hinted at another buy. At the same time, concerns are rising over digital asset treasury firms as premiums compress, growth slows, and valuations face pressure, with analysts suggesting stock buybacks as a potential tool to stabilize share prices and rebuild investor confidence.

Metaplanet and El Salvador Buy More BTC

Japanese investment company Metaplanet and the government of El Salvador both expanded their Bitcoin holdings on Monday. The moves came as market sentiment showed signs of stabilizing, with the Crypto Fear & Greed Index returning to a neutral reading of 51 after three consecutive days in fear territory.

Metaplanet disclosed that it bought an additional 136 Bitcoin at an average price of 16,554,535 Japanese yen (about $111,830) per coin. This brought its total holdings to 20,136 Bitcoin worth more than $2.2 billion at current prices. 

The Tokyo-based firm has positioned itself as Japan’s leading corporate Bitcoin holder and the sixth-largest globally among the 186 treasuries tracked. In June, CEO Simon Gerovich shared details about a bold plan to accumulate 210,000 Bitcoin by 2027, which will make Metaplanet the second-largest corporate holder behind Michael Saylor’s Strategy.

The company’s growing exposure to Bitcoin has made its stock highly sensitive to crypto market conditions. While its initial announcement of a Bitcoin buy in July of 2024 pushed its share price up by 19% to $1.10, later purchases have not had the same effect. In the most recent session, Metaplanet’s shares fell nearly 3% to $4.65, though the stock is still up more than 92% year-to-date. The company also recently announced plans to raise $880 million through a public share offering in overseas markets after pressure on its stock slowed the momentum of its capital-raising flywheel model.

Metaplanet YTD share price (Source: Google Finance)

Meanwhile, El Salvador celebrated the anniversary of Bitcoin becoming legal tender by purchasing 21 more coins, lifting its total holdings to 6,313. President Nayib Bukele framed the acquisition as a symbolic gesture to commemorate “Bitcoin Day,” which refers to the September 2021 law that integrated the cryptocurrency into the nation’s financial system. The purchase was made despite an IMF report in July suggesting the country scaled back its buying since agreeing to a $1.4 billion loan package last year.

Adding to the bullish signals, Strategy’s executive chairman Michael Saylor hinted on Sunday that another major corporate buy could be imminent. In a post to X, he shared a screenshot of the company’s Bitcoin portfolio with the caption “needs more orange,” a phrase he typically uses before revealing new purchases. Strategy is the largest corporate holder by a wide margin with 636,505 Bitcoin.

These moves by Metaplanet, El Salvador, and Strategy prove that corporate treasuries and nation-states see Bitcoin as a strategic asset.

Crypto Treasuries Face Tougher Road Ahead

The premiums of digital asset treasury firms are shrinking, raising concerns about their stability. According to New York Digital Investment Group’s global head of research, Greg Cipolaro, the gap between share prices and net asset values of leading Bitcoin-buying companies like Metaplanet and Strategy continued to compress, even as Bitcoin itself reached new highs. 

Cipolaro pointed to a mix of factors behind the trend, including investor anxiety over upcoming supply unlocks, shifts in corporate strategies, increased share issuance, profit-taking, and a lack of differentiation among treasury models.

Strategy’s premium to NAV has narrowed (Source: NYDIG)

Crypto treasury firms have become a popular trend on Wall Street, drawing in billions over the past year. However, their valuations are increasingly under scrutiny. Investors often assess their health by comparing share prices with the value of their Bitcoin holdings, and current pricing suggests rising caution. 

Cipolaro warned that a “bumpy ride may be ahead” as many firms are preparing for mergers or public listings, which could result in a wave of selling pressure once shares become freely tradeable. Some firms, including KindlyMD and Twenty One Capital, are already trading at or below the value of their latest fundraises, raising the risk of further declines.

To mitigate the risks, Cipolaro advised that digital asset treasury firms consider stock buyback programs, which could help lift share prices by reducing supply. He stressed that companies should keep some capital aside specifically for buybacks to stabilize investor confidence.

At the same time, Bitcoin treasury holdings reached a new high of 840,000 BTC this year, with Strategy accounting for more than three-quarters of that amount. However, the pace of accumulation slowed sharply. Strategy’s average monthly growth rate dropped to just 5% in August compared to 44% at the end of 2024, while other companies reported only 8% growth compared to 163% in March. 

Monthly Bitcoin purchases (Source: CryptoQuant)

This slowdown in treasury growth happened as Bitcoin itself lost momentum. The cryptocurrency is trading flat at around $111,343, down more than 10% from its mid-August peak above $124,000.