Metaplanet Expands Bitcoin Holdings with $1.4 Million by Selling Put Options
Tokyo-listed investment firm Metaplanet Inc. has increased its Bitcoin holdings to 530.717 BTC, valued at approximately $32.4 million, following a recent transaction involving the sale of put options.
The company reported earning 23.972 BTC, equivalent to about $1.46 million, through this strategy.
In a statement released on Thursday, Metaplanet disclosed that it sold 223 Bitcoin put options with a strike price of $62,000, set to mature on December 27, 2024. This transaction was conducted in collaboration with QCP Capital and required margin collateral of $13.8 million, which was financed through new capital raised from the company's stock acquisition rights exercise.
The firm emphasized that this options strategy is designed to enhance its Bitcoin reserves without increasing financial risk.
If Bitcoin's market price falls below the strike price at maturity, Metaplanet will be obligated to purchase the crypto at that price. However, the company has already secured the necessary funds for this potential purchase.
CEO Simon Gerovich noted that the inherent volatility of Bitcoin serves as an opportunity for the firm to augment its holdings. He stated, “While the majority of our assets will always remain in pure Bitcoin holdings, we recognize that it’s advantageous to use a portion of our assets to generate a yield through options strategies.”
Metaplanet's recent activities come on the heels of a broader strategy announced in May, where the firm began adopting Bitcoin as its strategic treasury reserve asset. Just days before the options sale, the company reported an additional purchase of 107.913 BTC, amounting to approximately $6.9 million.
According to BitcoinTreasuries data, MicroStrategy remains the largest corporate Bitcoin holder, owning 252,220 BTC. Marathon Digital follows this record with 26,200 BTC.
As of the latest market update, Bitcoin traded at $60,965, reflecting a 1.28% decline over the past 24 hours.
