Metaplanet Earned 5.9 BTC in Premium With Its New Strategy

• Metaplanet has shifted its Bitcoin put option strike price to $66K.
• Metaplanet has earned 5.9 BTC in premiums and has increased its holding to 861.4 BTC.
• The yield has increased by 2.65% to a total of 13.40% by roll-up transaction.

Metaplanet Inc. is a Japanese investing company. The firm has updated its Bitcoin put option strike price to $66K.

It has secured 5.9 BTC in premium income, and its Bitcoin holding has climbed to 861.40 BTC. The company’s nominal yield increased by 2.65% to 13.40% due to the deal with QCP Capital.

Metaplanet’s Strategic Bitcoin Options Roll-up Enhances Yield Amidst Rally

Metaplanet had 223 Bitcoin put option contracts at the strike price of $62,000. Further, it has rolled up to the $66,000 strike price.

On October 16, this transaction was done with QCP Capital under the company’s new strategy. This was done to take advantage of the recent rally of Bitcoin over the $67,000 mark.

Both sets of options are set to expire on December 27, 2024. This extra 5.9 BTC premium came to ¥57.9 million ($387,640). The nominal yield also rose from 10.75% to 13.40%due to the roll-up.

Bitcoin Holdings Boosted to Support Metaplanet’s Strategy in Long-term

Metaplanet‘s holdings have increased to 861.4 BTC thanks to the additional 5.9 BTC in premium income. The average acquisition price for Bitcoin across all of its holdings is 9.3 million yen per Bitcoin. This indicated a steady strategy of building up BTC over time.

Bitcoin holdings of the company are around ¥8.02 billion in total. Metaplanet has been using Bitcoin as a reserve asset since May 2024 to hedge against the yen’s volatility. Still, the firm is also expanding its Bitcoin exposure. For this, it uses premium income from put option sales to fund some of its acquisitions.

In the meantime, Metaplanet acquired 108.78 Bitcoin in another development. The company paid ¥9,266,724 per Bitcoin for about 506 tokens on October 1.

Metaplanet is the second most well-known Asia-listed company after Hong Kong-based Meitu. It has earned the moniker “Asia’s MicroStrategy” due to its aggressive Bitcoin holdings.

Financial Position and Risk Management Remained the Same

The company’s $13.8 Million in margin collateral from the Board’s previous stock acquisition rights is unaffected by the roll-up. The higher strike price implied a greater obligation to pay if Bitcoin falls below $66,000 before December 27.

However, Metaplanet would have to pay $66,000 per contract, or $14.7 Million. It has to do this to purchase a Bitcoin in the event of a market decline. Although more than $892,000 has been paid, more collateral still needs to be paid.

Metaplanet Reports ¥272.4 Million In Premium Income

In the fiscal year ending December 2024, the revenue from the most recent put option transaction will be recognized as 5.9 BTC. Metaplanet‘s premium income for the period is 29.88 BTC. That includes the 23.97 BTC earned from the initial option sale on October 3.

The company’s financial performance has significantly benefited from both transactions. It has produced ¥272.4 Million in premium income. According to Metaplanet, its strategic roadmap still sets aside all the money for upcoming Bitcoin purchases.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.