Metaplanet adds BTC holdings after put options sale with QCP Capital

Japanese investment company Metaplanet purchased 23.97 Bitcoins from an option transaction with QCP Capital, a Singapore-based digital asset trading company, bringing Metaplanet’s total Bitcoin proceeds to 530.72 BTC.

In the company’s announcement dated October 3, Metaplanet announced that it has entered into a Bitcoin (BTC) options trading agreement with Singaporean digital asset trading company QCP Capital.

Metaplanet sold 223 put options worth $62,000 that expire on December 27, 2024, according to the statement. This sale gave Metaplanet a profit of 23.97 BTC in option premium, which was recorded as revenue.

“This transaction allows the company to benefit from Bitcoin’s volatility by generating premiums
The company stated in its announcement that it would generate revenue while maintaining a fully cash-collateralized position.

With its previous acquisition worth $6.94 million, one of the company’s largest single acquisitions, Metaplanet now has 530.72 Bitcoin assets, representing $32.55 million as of October 3.

By selling 223 Bitcoin put options, the company increases its Bitcoin holdings if the market price falls below $62,000 at expiration.

“This strategy not only increases the company’s Bitcoin reserves, but also strengthens its balance sheet, consistent with our ongoing financial strategy to strengthen long-term Bitcoin exposure,” Metaplanet said.

Since the weakening of Japan’s currency in May 2024, Metaplanet has continued to increase its Bitcoin holdings to combat economic difficulties.

Since announcing its decision to adopt Bitcoin as a reserve asset, Metaplanet has invested 4.96 billion yen, with an additional ¥215 million from the latest put option sale.

In addition to increasing its Bitcoin reserves, Metaplanet plans to raise $70 million through stock rights offerings, pledging to devote more than 80% to its Bitcoin strategy.

Metaplanet’s Bitcoin strategy reflects growing interest from Japanese investment managers, who have shown interest in exploring crypto investments, according to a June survey by Nomura.

On October 1, Japan elected new Prime Minister Shigeru Ishiba and released policy documents laying out its pro-blockchain strategy to stimulate the economy globally through local assets such as food and tourism.