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Metaplanet Rolls up Bitcoin Put Options, Buys More BTC

Metaplanet acquired a fresh batch of 106.976 BTC yesterday, taking its Bitcoin stash to 855.478 BTC valued at over $57.2 million at current market price.

Avatar image of Faith Faith•October 16, 2024

Japanese venture capital firm Metaplanet has completed its Bitcoin put options roll-up, adjusting the strike price from $62,000 to $66,000. Notably, this move comes following the firm’s recent purchase of 106.976 BTC.

For context, options roll-up is a strategy in which an investor closes an existing options position and simultaneously opens a new position in the same option at a higher strike price. It is essentially a way to increase the strike price of an option position.

Metaplanet Rolls up Bitcoin Put Options

According to the notice, Metaplanet has repurchased 223 contracts of $62,000 put options previously disclosed on October 3 from Singapore-based digital asset trading firm QCP Capital.

This transaction was intended to replace the existing Bitcoin put options with new options at an updated strike price of $66,000 while maintaining the same maturity date of December 27.

The Tokyo-listed firm noted that the margin collateral remained unchanged at around $13.8 million, sourced from the proceeds of its stock acquisition rights exercise.

“This boosts our nominal yield on option sales and generated an additional JPY 57.9 million in premium, bringing total premium earnings to JPY 272.5 million, to be booked as revenue this year,” Metaplanet’s CEO Simon Gerovich said.

The firm highlighted that this move capitalizes on Bitcoin’s volatile nature, aligning with its ongoing strategy to strengthen long-term exposure to Bitcoin.

“By increasing the strike price, this approach allows for a higher yield potential while keeping in line with the company’s objectives to enhance bitcoin holdings and support its path toward profitability. This transaction generated an additional net premium income of 5,9095 BTC, reinforcing the company’s financial position without changing the intended use of funds, which remains allocated for potential Bitcoin purchases,”  the firm added.

Metaplanet Acquires More BTC

Dubbed “Asia’s MicroStrategy” due to its frequent Bitcoin purchases, Metaplanet disclosed on Tuesday that it purchased an additional 106.976 BTC worth about 1 billion yen ($6.7 million), raising its total holdings to 855.478 BTC valued at over $57.2 million at current market prices.

The company has been on a Bitcoin buying spree in recent months after announcing earlier this year that it had started to adopt Bitcoin as its strategic treasury reserve asset.

Meanwhile, the leading cryptocurrency, Bitcoin, climbed 3.37% over the past 24 hours to trade at $68,045 at the time of writing.

Faith

Faith is a dedicated content writer who is focused on expanding her interest and knowledge about cryptocurrencies and blockchain technology. In her free time, she enjoys listening to music, reading, and traveling.