Metaplanet rolls up 223 contracts of Bitcoin put options for additional revenue
Japanese investment firm Metaplanet Inc. has increased the strike price of its Bitcoin put options from $62,000 to $66,000.
In a company notice dated October 16, Metaplanet said that it decided to repurchase 223 put options contracts from QCP Capital in order to take advantage of the volatility of Bitcoin by changing the strike price to $66,000.
*Metaplanet rolls up $BTC put options, earns additional 5.90 $BTC in revenue* pic.twitter.com/u72rppyuIj
— Metaplanet Inc. (@Metaplanet_JP) October 16, 2024
Metaplanet disclosed that the transaction would substitute new Bitcoin put options with the existing ones at an updated strike price, all while maintaining the same December 27 maturity date.
In an X post, Simon Gerovich, CEO of Metaplanet, said, This increases our nominal yield on option sales and generated an additional JPY 57.9 million in premium, bringing the company total premium earnings to JPY 272.5 million, to be booked as earnings this year.
The company said that it earned 5.9 BTC in aggregate premium and that this adjustment allowed it to increase the nominal yield by 2.65% to a total of 13.40%.
By raising the strike price, this strategy enables a greater yield potential while adhering to the company's objectives of expanding bitcoin holdings and supporting its profitability path," the firm continued.
Metaplanet's Bitcoin acquisition spree
Following its May announcement that it had begun to adopt bitcoin as its strategic treasury reserve asset, Metaplanet has been on a buying spree in recent months.
By the end of 2024, Metaplanet intends to purchase an additional ¥7.5 billion (roughly $50.5 million) worth of Bitcoin, according to Dylan LeClair, director of Bitcoin strategy. This is a portion of the ¥10 billion that the stock acquisition rights are intended to raise.
Metaplanet fifth Bitcoin acquisition in October
Metaplanet has been growing its Bitcoin reserves since the start of this month. On October 15, the Japanese investment firm Metaplanet said that it had acquired almost 107 Bitcoin (BTC).
The Japanese company has purchased Bitcoin assets five times this month for its reserves. It disclosed on Tuesday that it had grown its total holdings to 855.478 BTC, or about $57.4 million at the current market price, after purchasing an additional 106.976 BTC for about 1 billion yen ($6.7 million).
Metaplanet's stock rise 6.88%
According to Google Finance, Metaplanet's stock is currently trading at about 1,181 yen, up 6.88% so far on Wednesday in Japan. Even now, in the afternoon, the stock is still trading. According to CoinMarketCap data, Bitcoin increased 2.62% in the last day to trade at $67,728.19 at the time of writing.
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