Metaplanet's Strategic Bitcoin Options Sale Enhances Holdings
Metaplanet has executed a significant options strategy in BTC to strengthen its asset base, leading to nearly 24 BTC in premium earnings.
Metaplanet's Strategic Bitcoin Options Sale Enhances Holdings
Tokyo-listed bitcoin holder Metaplanet Inc. is utilizing Bitcoin (BTC) options to enhance its asset stash, departing from the approaches of its U.S. counterpart Microstrategy's debt-driven accumulation strategy.
On October 3, 2024, Metaplanet revealed the sale of 223 contracts of bitcoin put options with a $62,000 strike price, set to mature on December 27, 2024. This transaction with QCP Capital, based in Singapore, earned a premium of 23.972 BTC (approximately $1.44 million).
Metaplanet committed $13.826 million as margin collateral, receiving an upfront premium of 0.1075 BTC for each contract sold. This yielded an annualized return of approximately 45.63% for Metaplanet on this trade.
The funds used for this margin collateral stemmed from capital raised during Metaplanet's latest stock acquisition rights exercise, ensuring they can uphold the transaction obligations if the option is exercised.
Strategic Selling of Puts
The company plans to use the premium income from selling put options to acquire more bitcoin, now possessing a total of 530.717 BTC (approximately $32 million).
If Bitcoin's price drops below the strike price by the expiration date, Metaplanet will be obligated to acquire an additional 223 BTC, but will retain the premium, offsetting some market risks.
