Bitcoin reserve assets upgraded, Metaplanet increases BTC revenue through options trading

As more and more public companies are adopting Bitcoin as a reserve asset, simply buying Bitcoin may no longer be sufficient! Japanese company Metaplanet has announced its Bitcoin options trading partnership with Singapore-based digital asset trading firm QCP Capital, which Metaplanet refers to as "target buying," emphasizing it as an alternative way to acquire Bitcoin.

Selling Bitcoin Put Options to Increase Profits

Metaplanet used the proceeds from a previous stock issuance as collateral to sell 223 Bitcoin put option contracts to QCP Capital, under the following conditions:

• Expiration Date: 12/27/2024
• Strike Price: $62,000
• Premium: 0.1075 BTC per contract

If the Bitcoin market price falls below the strike price of $62,000 at expiration, Metaplanet will be obligated to purchase Bitcoin at the strike price. This strategy aligns with its goal of continuously increasing its Bitcoin holdings. Metaplanet has set aside the necessary funds, eliminating additional financial risks compared to directly purchasing Bitcoin.

Additionally, the nominal dividend yield is 10.75%, corresponding to a premium amount of 214,549,400 Japanese Yen, resulting in a breakeven price of approximately $55,335, lower than the $62,000 strike price.

If Bitcoin exceeds $62,000 at expiration, Metaplanet does not need to execute any trades, effectively earning the premium of 23.972 BTC.

Metaplanet emphasizes that this strategy is a "targeted purchase," offering an alternative method to acquire Bitcoin without altering the use of funds.

Metaplanet Holds 530 Bitcoins, Stock Price Surges Over Fourfold Year-to-Date

After announcing the adoption of Bitcoin as its strategic reserve asset in May, Metaplanet has been aggressively purchasing Bitcoin in recent months. On Tuesday, Metaplanet additionally acquired 107.913 Bitcoins worth approximately 1 billion yen. The company now holds 530.727 Bitcoins with an average cost of 9,354,425 Japanese Yen or around $63,635.

Metaplanet's stock closed at 966 Japanese Yen on Thursday, marking a 408% increase year-to-date. In July, the stock price briefly surged to 3,000 Japanese Yen.