Bitcoin investment firm Metaplanet announced on October 3 that it sold 233 Bitcoin put options and earned 23.97 BTC as a premium.
The company sold 223 contracts for Bitcoin put options at a price of $62,000 per BTC. These contracts will expire on December 27, 2024. The sales were backed by $13.8 million that Metaplanet raised from its 11th stock acquisition rights exercise.
A put option is a financial contract that gives the buyer the right (but not the obligation) to sell an asset, like Bitcoin, at a fixed price (called the strike price) within a set time period.
For each contract sold, Metaplanet earned 0.1075 BTC in premiums, adding up to a total of 23.97 BTC. This brought the firm’s total Bitcoin holdings to 530.72 BTC, which it bought for around ¥4.965 billion (about $33.8 million).
The company made this deal with QCP Capital, a Singapore-based digital asset trading firm.
Why is Metaplanet Doing This?
Metaplanet explained that its goal is to take advantage of Bitcoin’s price changes (volatility) to earn money while keeping a safe financial position. They said this strategy helps increase their Bitcoin reserves and strengthen the company’s financial health, all while working toward profitability.
CEO Simon Gerovich said that this approach fits with the company’s long-term goals. It allows Metaplanet to grow its Bitcoin stash without only buying it directly. While most of their assets are held in Bitcoin, using a small portion for options trading helps generate extra income. This lets them grow their holdings and earn a steady stream of income at the same time.
The strategy also aims to boost annual profits and increase value for shareholders, while keeping Bitcoin as their main focus.
Gerovich concluded by saying, “Metaplanet is committed to being a Bitcoin-only company. By using both direct Bitcoin holdings and income-generating strategies, we can benefit from Bitcoin’s growth potential while keeping a strong and stable foundation.”
Conclusion: Metaplanet is using a smart strategy of selling put options to grow its Bitcoin reserves without just relying on direct purchases. This approach strengthens its financial position, generates income, and aligns with its long-term goal of maximizing Bitcoin exposure.
Source: https://cryptoslate.com/metaplanet-leverages-put-options-to-grow-bitcoin-stash-with-nearly-24-btc/
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