Japan’s Metaplanet Generates $1.4 Million in Bitcoin by Selling Put Options, Increasing Holdings to 530 BTC

SUMMARY

Metaplanet, known as “Japan’s MicroStrategy,” has acquired an additional 23.9 Bitcoin (BTC) to enhance its Treasury Allocation.
The firm announced on the X platform that this BTC was earned through the sale of put options.

Japanese investment firm Metaplanet Inc. has secured 23.972 BTC, worth roughly $1.46 million, by selling bitcoin options to improve its holdings. The Tokyo-listed company declared that it engaged in a bitcoin options transaction with QCP Capital, selling 223 bitcoin put options that permit it to increase its Bitcoin reserves if the market price falls underneath the strike price of $62,000 at maturity, which is set for December 27, 2024.

Metaplanet emphasized that this methodology not only supports its bitcoin reserves but also reinforces its balance sheet, adjusting with its progressing financial plan to increase long-term bitcoin exposure and support its path to profitability. With the most recent addition, Metaplanet’s total bitcoin possessions have risen to 530.717 BTC, valued at approximately $32.4 million. The firm utilized $13.8 million in margin collateral sourced from new capital raised through the company’s stock acquisition rights exercise to back this put options technique, which aims to increase bitcoin possessions without influencing current assets.

The firm clarified that it is committed to buy bitcoin at the strike price if the market falls underneath $62,000 at maturity. Be that as it may, since this transaction is completely cash-secured, it poses no extra financial risk compared to outrightly buying bitcoin. Simon Gerovich, Metaplanet’s CEO, stated on X that the volatility of bitcoin creates openings for generating more BTC, and whereas a larger part of the company’s resources will stay in direct bitcoin holdings, a portion will be utilized to produce yield through options techniques. This dual approach empowers Metaplanet to capitalize on bitcoin’s development potential while maintaining a steady financial foundation.

In recent months, Metaplanet has been effectively expanding its bitcoin investments, having reported in May its strategy to adopt bitcoin as a treasury reserve asset. The firm also disclosed the purchase of an extra 107.913 BTC worth around 1 billion yen ($6.9 million) earlier this week. At the time of writing, bitcoin was trading at $60,965, having plunged 1.28% over the past 24 hours, following a peak above $66,000 last week.

Meanwhile, Metaplanet’s stock closed down 3.21% at 966 Japanese yen on Thursday but has seen a surprising rise of 468% this year, previously reaching 3,000 yen on July 24, according to Yahoo Finance. As Metaplanet continues to grow its bitcoin holdings, it positions itself as a critical player in the cryptocurrency scene, despite the fact that it trails behind MicroStrategy, the largest corporate bitcoin holder, which possesses 252,220 BTC, followed by Marathon Digital with 26,200 BTC.