Japanese investment firm Metaplanet has completed a strategic roll-up transaction involving 223 contracts of Bitcoin put options, raising the strike price from $62,000 to $66,000 in response to Bitcoin’s recent bullish surge.
In an announcement on October 16, Metaplanet revealed it repurchased the 223 contracts of $62,000 put options from Singapore-based digital asset trading firm QCP Capital, which had been sold previously. The firm then sold 223 new contracts with the updated strike price of $66,000.
This transaction yielded Metaplanet an additional ¥57.9 million, approximately $387,640, in premium from the put options, which the company will recognize as revenue. The decision to adjust the strike price is aimed at capitalizing on Bitcoin’s volatility, allowing for greater yield potential while aligning with the company’s goal of enhancing its Bitcoin holdings and moving towards profitability.
At the time of writing, Bitcoin’s price had surpassed $67,000 following a recent rally. Metaplanet’s notice highlighted that if Bitcoin settles below $66,000 at maturity, the firm may be required to purchase Bitcoin at that price.
In addition, Metaplanet recently made a significant Bitcoin purchase on October 15, totaling $6.9 million. This brings the company’s total Bitcoin holdings to 861.39 BTC, valued at around $57.6 million based on current market prices.
CEO Simon Gerovich noted in a post on X that the latest put options deal has increased their nominal yield on options sales, contributing an extra ¥57.9 million to their premium earnings, which now total ¥272.5 million for the year.
Metaplanet previously entered into a put options agreement with QCP Capital on October 3, selling 223 contracts at a strike price of $62,000, which are set to expire on December 27, 2024. This initial sale generated a profit of 23.97 BTC in option premium for the firm.
Often referred to as “Asia’s MicroStrategy,” Metaplanet has been actively diversifying its Bitcoin holdings. The firm decided to bolster its Bitcoin reserves in May 2024 as part of its strategy to navigate the economic challenges facing Japan’s yen.