Japan’s Metaplanet Earns $1.4 Million In Bitcoin By Selling Put Options, Boosts Holdings To 530 BTC

The Tokyo-listed firm noted in a statement on Thursday that it has entered into a bitcoin options transaction with QCP Capital. “By selling 223 bitcoin put options, the company is able to increase its Bitcoin holdings if the market price falls below the strike price of $62,000 per bitcoin at maturity,” Metaplanet said. The maturity date is set at Dec. 27, 2024.

“This strategy not only enhances the company’s bitcoin reserves but also reinforces its balance sheet, aligning with our ongoing financial strategy to strengthen long-term bitcoin exposure and improve the company’s financial position, supporting its path toward profitability,” Metaplanet said in the statement, adding that the margin funds are planned to be used for purchasing bitcoin.

By receiving 23.972 BTC, the company expanded its total holdings to 530.717 bitcoin, or about $32.4 million.

The margin collateral of $13.8 million was required for the put options strategy and was sourced from new capital raised from the proceeds of the company’s stock acquisition rights exercise. This means the strategy was financed through separate funds and is designed to potentially increase their Bitcoin holdings, not to utilize or hedge their current holdings

Metaplanet explained that with the options sale, the company would be obligated to purchase bitcoin at the strike price if the market price of bitcoin falls below $62,000 at maturity. “However, as this transaction is fully cash-secured and the company has already set aside the necessary funds, there is no additional financial risk compared to directly purchasing bitcoin,” the firm said.

In a post on X on Thursday, Simon Gerovich, chief executive officer of Metaplanet, wrote that bitcoin is a volatile asset and such volatility “creates opportunities for us to generate more bitcoin.”

“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,” Gerovich said. “By utilizing both direct holding and yield-generating strategies, we position ourselves to capitalize on Bitcoin’s growth potential while maintaining a stable and profitable foundation.”

Metaplanet has been on a bitcoin buying spree in recent months after announcing in May that it had started to adopt bitcoin as its strategic treasury reserve asset. On Tuesday, Metaplanet said it purchased an additional 107.913 bitcoin worth about 1 billion yen ($6.9 million).

Bitcoin dipped 1.28% over the past 24 hours to trade at $60,965 at the time of writing after reaching above $66,000 last week, according to The Block’s price page.

Metaplanet’s stock closed down 3.21% at 966 Japanese yen on Thursday in Japan. The firm's stock has risen 468% so far this year, once reaching 3,000 yen at closing on July 24, according to Yahoo Finance.

Meanwhile, Michael Saylor-led MicroStrategy remains the largest corporate bitcoin holder, owning 252,220 BTC, according to BitcoinTreasuries data. Marathon Digital follows this record with 26,200 BTC.

Source: https://www.theblock.co/post/319297/japans-metaplanet-earns-24-bitcoin-via-put-options-sale