Metaplanet Adjusts Bitcoin Put Options Strategy

Metaplanet Inc., a Japanese investment firm, has revised its bitcoin put options strategy, raising the strike price from $62,000 to $66,000. 

This adjustment was disclosed on Wednesday as part of the company’s ongoing efforts to enhance its Bitcoin holdings. The transaction involved repurchasing 223 bitcoins, putting options at the lower strike price, and selling the same number of new options with the increased strike price while maintaining the original maturity date of December 27.

An options roll-up allows investors to close an existing position and open a new one at a higher strike price, thereby increasing potential returns. 

According to Metaplanet, the adjustment generated an additional JPY 57.9 million in premiums, bringing the total premium earnings for the year to JPY 272.5 million. The margin collateral for these options remained unchanged at approximately $13.8 million, sourced from the firm’s previous stock acquisition rights exercise.

The company’s CEO, Simon Gerovich, shared on X that this change boosted the nominal yield on the options by 2.65%, bringing the total yield to 13.40%. The firm earned 5.9 BTC in aggregate premium as part of the transaction.

We’ve completed a roll-up of our Bitcoin put options, adjusting the strike price from $62K to $66K with a Dec 27, 2024, maturity. This boosts our nominal yield on option sales, and generated an additional JPY 57.9M in premium, bringing total premium earnings to JPY 272.5M, to be… pic.twitter.com/iIfmhJa6ul

— Simon Gerovich (@gerovich) October 16, 2024

 

Metaplanet’s Bitcoin Increase

Metaplanet has been actively increasing its bitcoin holdings over recent months. On Tuesday, the firm purchased an additional 106.976 BTC, valued at roughly JPY 1 billion ($6.7 million), bringing its total Bitcoin holdings to 855.478 BTC. At current market prices, these holdings are worth approximately $57.4 million.

The firm had previously announced in May that it had adopted Bitcoin as a strategic treasury reserve asset. This latest acquisition further strengthens its position in the cryptocurrency market.

Following the disclosure of the options adjustment, Metaplanet’s stock price rose by 6.88% in trading on Wednesday, reaching 1,181 yen. Despite the firm’s gains, Japan’s broader Nikkei 225 index was down by 1.77% during the day’s trading session. 03254129

Bitcoin, meanwhile, saw a 3.93% price increase over the past 24 hours, trading at $67,538 at the time of reporting. While Metaplanet continues to expand its bitcoin holdings, MicroStrategy remains the largest corporate bitcoin holder, with 252,220 BTC, followed by Marathon Digital with 26,842 BTC.