Japanese investment firm Metaplanet Inc. reported profit of 23,972. BTC
-0.87%
By selling Bitcoin options and collecting the premium to increase his holdings, he raised about $1.46 million at current prices.
Tokyo listed companies name On Thursday, it announced that it had concluded a Bitcoin options deal with QCP Capital. “By selling 223 Bitcoin put options, the company can increase its Bitcoin holdings if the market price falls below the strike price of $62,000 per Bitcoin at expiration,” Metaplanet said. The maturity date is set for December 27, 2024.
“This strategy not only increases the company’s Bitcoin holdings, but also strengthens its balance sheet. This is in line with our current financial strategy to strengthen our long-term Bitcoin exposure and improve the company’s balance sheet to support its path to profitability. ,” Metaplanet said. He added that the margin funds will be used to purchase Bitcoin.
By receiving 23.972 BTC, the company expanded its total holdings to 530.717 Bitcoin, or approximately $32.4 million.
The put options strategy required $13.8 million in margin collateral, which was financed from new capital raised from proceeds from the exercise of the company’s share rights. This means that the strategy was funded through a separate fund and was designed to potentially increase Bitcoin holdings rather than to leverage or hedge current holdings.
Metaplanet explained that if selling the option causes the Bitcoin market price to fall below $62,000 at expiration, the company is obligated to purchase Bitcoin at the strike price. However, since this transaction is fully cash-backed and the company has already secured the necessary funds, there is no additional financial risk compared to purchasing Bitcoin directly.
Bitcoin is a volatile asset, and this volatility “creates opportunities for us to create more Bitcoin,” Metaplanet CEO Simon Gerovich wrote in a post to X on Thursday.
“While the majority of our assets will always remain pure Bitcoin holdings, we recognize that it may be advantageous to use a portion of our assets to generate returns through options strategies,” Gerovich said. “By leveraging both direct holding and monetization strategies, we are positioned to capitalize on Bitcoin’s growth potential while maintaining a stable and profitable base.”
Metaplanet has been accelerating its Bitcoin purchases in recent months after announcing in May that it had begun adopting Bitcoin as a strategic reserve asset. On Tuesday, Metaplanet Added 107.913 Bitcoin It is worth about 1 billion yen ($6.9 million).
After surpassing $66,000 last week, Bitcoin has fallen 1.28% over the past 24 hours, trading at $60,965 at the time of writing. The Block Pricing Page.
Metaplanet’s shares closed at 966 yen in the Japanese market on Thursday, down 3.21%. The company’s stock price has risen 468% so far this year, reaching 3,000 yen at one point as of the close on July 24, according to Yahoo Finance.
Meanwhile, MicroStrategy, led by Michael Saylor, remains the largest corporate Bitcoin holder, owning 252,220 BTC, according to BitcoinTreasuries. data. Marathon Digital follows this record with 26,200 BTC.
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