- Metaplanet’s ¥1 billion Bitcoin purchase adds to its growing 530 BTC holdings, solidifying its status as a key investor in Asia.
- Selling 223 put options at a $62K strike, Metaplanet generated 23.97 BTC, using the premium to increase its Bitcoin stash.
- Despite a 66% drop from its all-time high, Metaplanet’s stock surged 14%, driven by its continued Bitcoin investments and strategy.
Japanese public company Metaplanet has continued its Bitcoin acquisition, purchasing another ¥1 billion ($6.7 million) worth of BTC. This purchase brings their total investment in Bitcoin to 530.717 BTC, amounting to $32 million. Besides its consistent Bitcoin buying since May, Metaplanet also conducted strategic options trading to generate premiums, contributing to its increasing holdings. This move cements the firm’s position as one of Asia’s key Bitcoin investors, drawing comparisons to the US company MicroStrategy.
Strategic Bitcoin Acquisition and Options Trading
Metaplanet sold 223 fully USD-collateralized put options, each set at a $62,000 strike price, maturing on December 27, 2024. These contracts generated a premium of 23.97 BTC, adding $1.44 million in revenue. The company plans to use this premium to further boost its Bitcoin holdings. Significantly, Metaplanet's ability to successfully navigate Bitcoin price fluctuations is evident in its strategic use of options trading.
Moreover, the firm posted $13.826 million as margin collateral for these options, ensuring its capacity to meet contractual obligations. This collateral was secured from Metaplanet’s eleventh stock acquisition rights exercise, showcasing the company’s strong financial strategy. Furthermore, the company achieved a nominal yield of 10.75%, resulting in an impressive annualized yield of 45.63%.
Market Impact and Stock Performance
Metaplanet’s stock price has surged by 14%, trading around 1045 levels after its latest Bitcoin purchase. The stock is still 66% below its all-time high, despite its remarkable 544% rise year to date. Furthermore, due to the company's steady purchases, comparisons to MicroStrategy have been made; since January, the latter's shares have increased by 157%. This trend indicates the potential for further price surges in Bitcoin, aligning with Metaplanet's strategic acquisitions.
If Bitcoin trades below $62,000 by the maturity date, Metaplanet will be obligated to purchase 223 additional BTC at the higher strike price. However, the 23.97 BTC premium they earned will partially offset the risk. If Bitcoin trades above $62,000, the options will expire worthless, allowing Metaplanet to retain the premium as profit.
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