Metaplanet Increases Bitcoin Holdings by Selling Put Options, Earning 23.97 BTC in Premiums

• Metaplanet sells 223 Bitcoin put options, earning 23.97 BTC in premium income and enhancing its reserves.
• The put options have a $62,000 strike price and December 2024 maturity, generating an annual yield of 45.63%.
• Metaplanet’s Bitcoin holdings now total 530.72 BTC, with recent acquisitions further boosting its digital asset reserves.

Metaplanet Inc. has announced a recent Bitcoin options transaction with QCP Capital, selling 223 Bitcoin put options. This move has generated 23.97 Bitcoin (BTC) in premium income, reinforcing Metaplanet’s commitment to expanding its Bitcoin reserves.

The transaction further supports the company’s strategy of maintaining exposure to Bitcoin through alternative financial instruments while securing its long-term financial stability.

Bitcoin Put Option Details

The transaction involves the sale of Bitcoin put options with a strike price of $62,000 per Bitcoin and a maturity date set for December 27, 2024. Metaplanet secured 223 contracts, earning a premium of 0.1075 BTC per contract, resulting in total premium income of 23.97 BTC. The company backed this position with a margin collateral of $13.8 million, sourced from its recent stock acquisition rights exercise. The nominal yield from this transaction stood at 10.75%, while the annual yield reached 45.63%.

Strategic Use of Bitcoin Volatility

Metaplanet aims to capitalize on Bitcoin’s price volatility to enhance its reserves. The company employs a strategy of selling put options, giving them the opportunity to acquire more Bitcoin if prices drop below the strike price. 

This dual approach enables the firm to generate premium income while increasing Bitcoin holdings at a favorable price point, reinforcing its financial position. CEO Simon Gerovich emphasized the importance of this strategy, stating that the company’s balanced approach allows them to benefit from market movements while securing sustainable growth.

Updated Bitcoin Reserves

With this transaction, Metaplanet has further strengthened its Bitcoin reserves, which now total 530.72 BTC. The average purchase price across these holdings is approximately 9.35 million yen per Bitcoin. 

The company remains committed to increasing its Bitcoin exposure, having also acquired 107.91 BTC earlier in the month. This strategy aligns with Metaplanet’s long-term vision of maintaining a stable financial base while fully leveraging Bitcoin’s potential growth.