Key Points
- Metaplanet raised the strike price of 223 Bitcoin put option contracts from $62,000 to $66,000.
- This transaction provided Metaplanet with an additional revenue of ¥57.9 million ($387,640) in premium put options.
Japanese investment company Metaplanet recently finalized a roll-up transaction.
This involved 223 contracts of Bitcoin put options, with the strike price being increased from $62,000 to $66,000.
Details of the Transaction
According to a company notice dated October 16th, Metaplanet repurchased the 223 contracts of $62,000 put options from QCP Capital, a Singapore-based digital asset trading firm.
The company then sold 223 new contracts with a strike price of $66,000.
This transaction resulted in an additional ¥57.9 million ($387,640) in premium put options for Metaplanet.
The company recognizes this as revenue.
Reason for the Transaction
In the notice, Metaplanet explained its decision to repurchase the 223 put options contracts from QCP Capital.
The goal was to capitalize on Bitcoin’s volatility by adjusting the strike price to $66,000.
At the time of the notice, the price of Bitcoin had exceeded $67,000 following a recent rally.
“By increasing the strike price, this approach allows for a higher yield potential while keeping in line with the company’s objectives to enhance Bitcoin holdings and support its path towards profitability,” the company stated.
The notice also highlighted a potential risk.
By adjusting the strike price, Metaplanet could be obligated to buy Bitcoin at $66,000 if it settles below the price at maturity.
Metaplanet’s total Bitcoin holdings, after a recent purchase worth $6.9 million, have now reached 861.39 BTC.
This equates to around $57.6 million based on current market prices.
Simon Gerovich, CEO of Metaplanet, commented that the put options have boosted their nominal yield on put options sales.
This has provided Metaplanet with an additional ¥57.9 million in premium, taking the company’s total premium earnings to ¥272.5 million.
Metaplanet entered a put options deal with QCP Capital on October 3rd.
Metaplanet sold 223 contracts to QCP Capital worth $62,000, which will expire on December 27, 2024.
The sale resulted in a profit of 23.97 BTC in option premium for Metaplanet.
Metaplanet is frequently referred to as “Asia’s MicroStrategy” due to its regular Bitcoin purchases.
In May 2024, Metaplanet decided to invest more in Bitcoin reserves.
This was a strategic move to combat economic challenges affecting the Japanese yen.
