Japanese investment firm Metaplanet has completed a significant transaction involving 223 contracts of Bitcoin put options, adjusting the strike price from $62,000 to $66,000 amid Bitcoin’s recent bullish trend.

Strategic Adjustment in Bitcoin Put Options

On October 16, Metaplanet announced that it repurchased 223 contracts of $62,000 put options from Singapore-based digital asset trading firm QCP Capital. Subsequently, Metaplanet sold 223 new contracts at a strike price of $66,000. This strategic move generated an additional ¥57.9 million (approximately $387,640) in premium put options, recognized as revenue by the company.

Capitalizing on Bitcoin’s Volatility

Metaplanet explained that the decision to repurchase and adjust the strike price was driven by an intent to leverage Bitcoin’s volatile nature. By increasing the strike price to $66,000, the firm aims to enhance yield potential while aligning with its objective to bolster Bitcoin holdings and achieve profitability. As of the announcement, Bitcoin’s price has surged past $67,000.

“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,” stated the company.

However, Metaplanet acknowledged the risk that if Bitcoin’s price falls below $66,000 at maturity, the firm could be obligated to purchase Bitcoin at the higher strike price.

Enhanced Bitcoin Holdings

In addition to the put options transaction, Metaplanet has increased its Bitcoin holdings. Following a purchase on October 15 worth $6.9 million, the firm’s total Bitcoin holdings have reached 861.39 BTC, valued at approximately $57.6 million based on current market prices.

Metaplanet’s CEO, Simon Gerovich, highlighted in a recent statement that the put options have significantly contributed to the firm’s premium earnings, adding ¥57.9 million and bringing the total premium earnings to ¥272.5 million for the year.

Previous Transactions and Strategic Moves

Earlier, on October 3, Metaplanet entered a put options deal with QCP Capital, selling 223 contracts at a strike price of $62,000, set to expire on December 27, 2024. This transaction yielded a profit of 23.97 BTC in option premium for Metaplanet.

Often referred to as “Asia’s MicroStrategy” due to its frequent Bitcoin acquisitions, Metaplanet has strategically increased its Bitcoin reserves since May 2024. This move is part of a broader strategy to counteract economic challenges affecting the Japanese yen.

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