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

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

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.

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

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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