Japanese investment firm Metaplanet Inc. reported earning 23.972 Bitcoin (BTC), worth approximately $1.4 million, by selling put options as part of a strategic move to increase its Bitcoin holdings. The Tokyo-listed company has expanded its total Bitcoin reserves to 530.717 BTC, valued at over $32.4 million.
Metaplanet’s Strategic Bitcoin Options
Metaplanet sold 223 Bitcoin put options at a strike price of $62,000 per Bitcoin, with a maturity date set for December 27, 2024. The firm earned 23.972 BTC in premiums from the options sale, allowing it to boost its Bitcoin holdings without taking on additional financial risk. If Bitcoin’s market price drops below $62,000 by the maturity date, Metaplanet will be obligated to purchase Bitcoin at that price, effectively increasing its reserves.
“This strategy not only enhances the company’s Bitcoin reserves but also reinforces its balance sheet,” the firm stated. Metaplanet’s CEO Simon Gerovich emphasized that Bitcoin’s volatility presents opportunities for the company to generate additional Bitcoin through options strategies while maintaining long-term exposure to the asset.
Metaplanet’s Growing Bitcoin Holdings
Metaplanet has been on a Bitcoin buying spree in recent months, adopting the cryptocurrency as a strategic treasury reserve asset. In May, the company announced that it had begun using Bitcoin as a key component of its financial strategy. With its latest purchase, Metaplanet’s Bitcoin holdings have grown to over 530 BTC, positioning the firm as a significant player in the corporate Bitcoin space.
Source: The Block
