Metaplanet Inc. Reports Bitcoin Options Earnings
Japanese investment firm Metaplanet Inc. reported earnings of 23.972 BTC (approximately $1.46 million) by selling bitcoin options and collecting premiums to boost its holdings.
The Tokyo-listed firm stated that it entered into a bitcoin options transaction with QCP Capital. By selling 223 bitcoin put options, the company can increase its Bitcoin holdings if the market price falls below the strike price of $62,000 per bitcoin at maturity, set for December 27, 2024.
Metaplanet highlighted that this strategy enhances its bitcoin reserves and aligns with its financial strategy aimed at strengthening long-term bitcoin exposure while improving its financial position for profitability. The margin funds of $13.8 million required for the put options strategy were obtained from new capital raised from stock acquisition rights.
The sale of these options obligates Metaplanet to purchase bitcoin at the strike price if market prices dip below $62,000. However, since the transaction is fully cash-secured, there is no additional financial risk compared to directly purchasing bitcoin.
CEO Simon Gerovich noted that bitcoin’s volatility creates opportunities for generating more bitcoin. He mentioned that while most assets will remain in pure bitcoin, utilizing some to create yield through options strategies is advantageous for capitalizing on Bitcoin’s growth potential while maintaining stability and profitability.
Recently, Metaplanet has been in a buying phase for bitcoin, recently purchasing an additional 107.913 bitcoin for about $6.9 million. At the time of writing, Bitcoin traded at $60,965, dipping 1.28% over the past 24 hours after reaching over $66,000 last week.
Metaplanet’s stock closed down 3.21% at 966 Japanese yen with a total increase of 468% this year.
As a comparison, MicroStrategy, led by Michael Saylor, remains the largest corporate bitcoin holder with 252,220 BTC, followed by Marathon Digital with 26,200 BTC.
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