According to a statement on October 3, Bitcoin investment firm Metaplanet announced that it sold 233 BTC of put options, earning a premium of 23.97 BTC.
The company announced that it sold 223 contracts with a $62,000 BTC put option expiring on December 27, 2024. These agreements were fully backed by $13.8 million from Metaplanet's 11th exercise of stock acquisition rights.
A put option is a type of financial contract that gives the buyer the right to sell a specific stock or asset at a set price (called the strike price) within a specific time period.
Each contract earns Metaplanet a premium of 0.1075 BTC, cumulatively totaling 23.97 BTC. With this income, the company's total Bitcoin holdings increased to 530.72 BTC, which it acquired at a cost of 4.965 billion yen (approximately $33.8 million).
Metaplanet revealed that it has signed this agreement with QCP Capital, a Singapore-based digital asset trading company.
Why Metaplanet promotes this strategy
Metaplanet explained that its goal is to leverage Bitcoin's volatility to generate income while maintaining a cash-secured position. It stated:
“This strategy not only increases our Bitcoin reserves, but also strengthens our long-term Bitcoin exposure, improving our financial position and supporting our continued path to profitability. Consistent with our financial strategy, we will strengthen our balance sheet.”
Metaplanet CEO Simon Gerovich emphasized that this strategy is consistent with the company's broader goals. He emphasized that this approach allows investors to increase their Bitcoin holdings without relying solely on direct purchases.
Gerovich explained that while most of his assets remain in Bitcoin, some of them can be used in options strategies to generate additional income. This dual approach allows you to grow your holdings while benefiting from a stable source of income.
This strategy also supports Metaplanet's goal of generating annual profits and increasing shareholder value while maintaining its focus on Bitcoin.
He concluded:
“Metaplanet remains a Bitcoin-only company and is focused on maximizing long-term exposure to this transformative asset. By leveraging both direct ownership and yield-generating strategies, We are well-positioned to take full advantage of Bitcoin's growth potential while maintaining a stable and profitable foundation.”
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