Metaplanet rolls up 223 contracts of Bitcoin put options, adds 5.90 BTC to their revenue

Japanese investment firm Metaplanet has completed a batch of 223 Bitcoin put option contracts, increasing the strike price from $62,000 to $66,000 following Bitcoin’s upward trend.

Metaplanet repurchased 223 put option contracts from Singapore-based digital asset trading firm QCP Capital for $62,000 from an earlier put option sale, according to the company’s Oct. 16 announcement. The firm began selling 223 new contracts with a strike price of $66,000.

This transaction gave Metaplanet an additional ¥57.9 million, or $387,640 worth of premium put options, which the company recognized as revenue.

In the notice, Metaplanet stated that the reason behind its decision to repurchase 223 put option contracts from QCP Capital was to take advantage of the volatile nature of Bitcoin by setting the strike price at $66,000. At the time of writing, the price of Bitcoin (BTC) is back above $67,000 following its recent rally.

“By increasing the strike price, this approach allows for higher return potential, in line with the company’s goals of developing Bitcoin holdings and supporting the path to profitability,” the company said.

The firm also emphasized in the risk section of the notification that by adjusting the strike price, Metaplanet may be forced to purchase Bitcoin at $66,000 if the price falls below it at expiration.

With Metaplanet’s last Bitcoin purchase of $6.9 million on October 15, Metaplanet’s total Bitcoin holdings equaled 861.39 BTC, or $57.6 million at current market prices.

Metaplanet CEO Simon Gerovich noted in an recorded as income this year.

On October 3, Metaplanet entered into a put option agreement with QCP Capital. Metaplanet sold 223 contracts worth $62,000 expiring December 27, 2024 to QCP Capital. This sell generated a profit of 23.97 BTC in option premium for Metaplanet.

Metaplanet has been called the “MicroStrategy of Asia” for its frequent purchases of Bitcoin and further diversification of its holdings. In May 2024, Metaplanet decided to invest more in its Bitcoin reserves as a strategy to combat the economic challenges plaguing Japan’s yen.