Metaplanet’s Bitcoin Stash Hits $40.6 Million After Latest Purchase

Tokyo-listed Bitcoin holder Metaplanet has bought an additional 108,786 Bitcoins for ¥1 billion, reflecting its ongoing bullish stance on the crypto asset.

The latest deposit is worth about $6.7 million.

Metaplanet Expands Bitcoin Holdings

According to the official statement released on Monday, Metaplanet, often known as Japan’s MicroStrategy, now has 639,503 BTC, with a current market value of about $40.6 million. The company disclosed that it acquired the additional bitcoins at an average price of 9.19 million yen ($61,880) per coin, while its total bitcoin purchases averaged 9.32 million yen ($62,790 ) for bitcoin.

The Japanese company has increased its bitcoin purchases over the past few months. In May, it stated that it was adopting cryptocurrency as a key part of its treasury reserve strategy. Last week, it announced the acquisition of another 107,913 BTC, worth approximately 1 billion yen ($6.9 million).

Data compiled by Google Finance revealed that the company’s share price rose more than 12% after the announcement on Oct. 7, hitting a high of 1,045 yen on the Tokyo Stock Exchange, but then fell to 988 yen.

Metaplanet announced in August that it had secured a ¥1 billion loan (worth about $6.8 million) from shareholder MMXX Ventures to increase its Bitcoin reserves. The loan has an annual interest rate of 0.1% and a term of six months, from August 8, with amortization in a single payment. If the company uses the full amount of the loan for Bitcoin, it could buy approximately 118.5 BTC at current prices.

Sale of Metaplanet Strategic Options

Metaplanet also recently announced that it had sold 223 bitcoin put option contracts with a strike price of $62,000 and an expiration date of December 27.

The deal was made with Singapore-based digital asset trading firm QCP Capital as the counterparty. The announcement revealed that Metaplanet received a bounty of 23,972 BTC ($1.44 million).

Metaplanet provided $13.826 million in collateral and received a premium of 0.1075 BTC per contract in advance. The operation produced a nominal return of 10.75% and an annualized return of 45.63%.

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