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Metaplanet raises bitcoin put option strike price to $66K, adds 5.9 BTC in premium

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Written on Oct 16, 2024
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  • Metaplanet raises bitcoin put option strike price from $62K to $66K.
  • The roll-up strategy generated an additional 5.9 BTC in premium.
  • The firm currently holds 861.39 BTC.

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Japanese investment firm Metaplanet has adjusted its bitcoin put options, raising the strike price to $66,000, following an earlier transaction.

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According to an October 16 announcement, the Tokyo-listed firm has repurchased 223 bitcoin put options with a strike price of $62,000 and simultaneously sold the same number of put options at a higher strike price of $66,000.

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This is part of what’s referred to as a roll-up strategy which involves closing an existing option position and reopening it at a higher strike price. It’s a way to increase returns while maintaining exposure to the underlying asset.

This latest transaction follows an earlier arrangement between Metaplanet and Singapore-based QCP Capital.

On October 3, Metaplanet sold 223 put option contracts to QCP Capital with a strike price of $62,000, set to expire on December 27 — the same expiry date for the current adjusted options.

In the announcement, Metaplanet said it was able to increase its nominal yield by 2.65%, raising the total yield on its option sales to 13.40% while adding 5.9 BTC in aggregate premium.

Further, the company added that the margin collateral for the options remains unchanged at $13.8 million.

The deal brought in an extra ¥57.9 million in premium for Metaplanet, boosting its total premium earnings to ¥272.5 million, all set to be logged as revenue this year.

Metaplanet’s bitcoin strategy

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This options strategy is part of Metaplanet’s broader plan to increase its bitcoin holdings.

The firm has been on a bitcoin buying spree since May 2024, when it announced the adoption of bitcoin as a strategic treasury reserve asset. 

Its latest purchase came on October 15, when Metaplanet grabbed an additional 106.976 BTC, valued at around $6.9 million, bringing its total bitcoin holdings to 861.39 BTC.

At current market prices, this is worth approximately $57.6 million. 

Metaplanet’s steady bitcoin buying spree has earned it comparisons to US-based MicroStrategy, which holds a massive 252,220 BTC, worth just under $10 billion.

As for Metaplanet, it’s been leaning on bitcoin as a buffer against Japan’s economic struggles, especially the weakening yen.

The firm’s focus on bitcoin has had a positive impact on its stock performance. Metaplanet’s stock price rose by 6.88% on October 16, trading at ¥1,181, while the broader Nikkei 225 index fell by 1.77% on the same day.

Alongside its bitcoin investments, Metaplanet has been pulling in extra funds to fuel its crypto buys.

In September, the firm rolled out a plan for its executives to snap up additional shares, targeting ¥299.7 million by offering 540,000 warrants.

This move followed a similar effort in August, where the company aimed to raise ¥10 billion through a separate stock rights issue.

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