Interest in altcoins like Solana and XRP is rising, alongside the growing adoption of stablecoins and DeFi. Meanwhile, Japanese Bitcoin treasury firm Metaplanet continued its aggressive BTC accumulation after the purchase of an additional 150 BTC on March 18. Strategy also recently announced a new stock offering to fund additional BTC purchases, though its recent acquisitions have slowed. Institutions Plan to Increase Crypto Allocations in 2025 Institutional investors are showing a growing interest in cryptocurrency, with 83% indicating plans to increase their crypto allocations in 2025. This is according to a recent report by Coinbase and EY-Parthenon. The report was published on March 18, and revealed a shift in sentiment among large financial firms, many of which now see digital assets as a key component of their portfolios. Nearly three-quarters of the surveyed institutions reported holding cryptocurrencies beyond Bitcoin and Ethereum, and a big number plans to allocate at least 5% of their portfolios to crypto. The primary driver behind this increased allocation is the belief that cryptocurrencies present the best opportunity for attractive risk-adjusted returns over the next three years. (Source: Coinbase ) Coinbase and EY-Parthenon compiled their findings based on interviews with more than 350 institutional investors that were conducted in January. The report also identified XRP and Solana as the most popular altcoins among institutional investors. Institutional investment in altcoins is expected to rise even more if US regulators approve pending applications for exchange-traded funds (ETFs) linked to digital assets. More than a dozen altcoin ETFs are currently awaiting approval from the US Securities and Exchange Commission (SEC), and analysts from Bloomberg Intelligence suggest that Litecoin, Solana, and XRP stand the best chances of securing regulatory clearance in the near future. Institutional interest in Solana gained even more traction on March 17 when the Chicago Mercantile Exchange (CME) Group launched futures contracts tied to the altcoin, which is a major milestone. Stablecoins are also gaining some traction among institutional investors, with 84% of those surveyed either currently holding or exploring investments in these digital assets. The report explained that institutions are utilizing stablecoins for purposes beyond crypto transactions, including yield generation, foreign exchange, internal cash management, and external payments. The rise of decentralized finance (DeFi) is another trend shaping institutional investment strategies. While only 24% of institutional investors currently engage with DeFi platforms, the survey suggests that this number could surge to close to 75% in the next two years. Institutions are particularly drawn to DeFi for opportunities in derivatives, staking, and lending, with many also expressing interest in altcoin access, cross-border settlements, and yield farming. A report by Citi in December reinforced the potential of stablecoins to accelerate on-chain activity, including the expansion of DeFi markets. Due to the fact that institutional engagement with DeFi continues to grow, the sector is certainly poised for big expansion. Metaplanet Buys More Bitcoin Some institutional investors are already hard at work upping their crypto stockpiles. Metaplanet, a Japanese Bitcoin treasury company, continued its aggressive Bitcoin accumulation strategy with the purchase of an additional 150 BTC on March 18. The acquisition cost 1.88 billion yen, or $12.6 million, and each Bitcoin was purchased at an average price of $83,671. This latest buy brings Metaplanet’s total Bitcoin holdings to 3,200 BTC, which is currently valued at approximately $261.8 million. Despite this accumulation, the company’s stock price dipped 0.5% on the day, in contrast to the 19% surge it experienced on March 5 when it announced a larger purchase of 497 BTC. To fund its Bitcoin acquisitions, Metaplanet issued over 44 million common shares. This is a strategy very similar to MicroStrategy’s Bitcoin-focused investment approach. The approach has earned Metaplanet the nickname “Asia’s MicroStrategy” due to its commitment to a treasury model centered around Bitcoin. The company’s Bitcoin yield, which measures the percentage change in BTC holdings relative to fully diluted shares outstanding, currently stands at 60.8% for the ongoing quarter. This is a large slowdown from the previous quarter’s 310% yield. Metaplanet’s March 18 purchase solidified its position as the 11th-largest corporate holder of Bitcoin and the largest in Asia, according to data from Bitbo . The company also plans to acquire 21,000 BTC by 2026. Since Metaplanet’s decision to transform into a Bitcoin treasury firm, its stock experienced a dramatic rise of 4,800% as of Feb. 10. However, after peaking on Feb. 19, its share price fell 34%, though it is still well above its March 2024 low. Metaplanet stock price over the past month (Source: Google Finance ) Investor interest in Metaplanet is reflected in its expanding shareholder base, which grew by 500% in 2024 to reach 50,000 investors. The company’s market cap also surged 9,652% in the past year. This rise coincides with Japan’s increasingly favorable stance on digital assets. On March 6, the country’s ruling party took steps to ease crypto capital gains taxes, lowering them to 20%. In November of 2024, the government passed a stimulus package that included commitments to crypto tax reform. Japanese lawmaker Satoshi Hamada urged the government to consider establishing a strategic Bitcoin reserve, and proposed that part of the country’s foreign exchange reserves be converted into Bitcoin. However, Prime Minister Shigeru Ishiba responded cautiously by stating that Japan lacks sufficient insight into the strategies of other nations regarding Bitcoin reserves, making it difficult to take a definitive stance on the matter. Strategy Plans New Stock Offering to Buy More BTC Meanwhile, business intelligence firm and Bitcoin investor Strategy also recently announced plans to offer 5 million shares of its Series A Perpetual Strife Preferred Stock, and the proceeds are expected to go toward general corporate purposes, including more Bitcoin acquisitions. The company stated that while it plans to use the funds for additional BTC purchases, the decision is still subject to market conditions and other factors. The new stock offering will accumulate cumulative dividends at an annual rate of 10%, with stockholders receiving quarterly payouts beginning on June 30, 2025. Strategy also pointed out that it retains the option to repurchase all outstanding shares for cash if the number of shares remaining in the market falls below 25% of the total issued amount. The stock issuance announcement was made after Strategy’s smallest Bitcoin purchase to date. On March 17, the company shared that it bought 130 BTC for $10.7 million in cash at an average price of approximately $82,981 per Bitcoin. This was the firm’s smallest purchase since its first Bitcoin investment in August of 2020, with the previous lowest being a 169 BTC acquisition in August of 2024. The company’s reduced buying activity comes amid concerns that the Bitcoin bull cycle may be over. On March 18, CryptoQuant founder and CEO Ki Young Ju expressed the view that the market has entered a period of bearish or sideways price action that could last between six to twelve months. Since first investing in Bitcoin, Strategy and its subsidiaries accumulated a total of 499,226 BTC at an aggregate purchase price of $33.1 billion. The average cost per Bitcoin, including fees and expenses, stands at $66,360. If the company acquires just 774 more BTC, it will surpass the 500,000 BTC milestone.
