Metaplanet increases Bitcoin gains through options roll-up trading.

As more and more publicly listed companies are adopting Bitcoin as a reserve asset, simply buying Bitcoin is no longer sufficient! Japan's Metaplanet has announced a Bitcoin options trading collaboration with Singapore digital asset trading company QCP Capital. Through roll-up trading, they aim to increase the execution price to boost Bitcoin option premium income. Metaplanet refers to this strategy as "targeted buying," emphasizing it as an alternative way to acquire Bitcoin.

Utilizing Options Roll-up Trading to Increase Bitcoin Returns

Metaplanet engaged in options trading with QCP Capital on 10/3, selling a total of 223 Bitcoin put option contracts under the following conditions:

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

With the rise in Bitcoin prices, Metaplanet decided to use roll-up trading to increase the strike price from the original 62,000 to 66,000, resulting in a higher yield of 2.65%, reaching 13.4%. In this transaction, Metaplanet also received an additional premium of 5.9095 BTC.

Note: In options trading, roll-up is an adjustment strategy that involves increasing the strike price of existing option contracts. This is typically used when selling put options, where investors can lock in profits by buying back the original put contract and selling a new put contract with a higher strike price when the underlying asset price rises.

On the expiration date of 12/27/2024, if Bitcoin falls below the strike price of $66,000, Metaplanet will be obligated to purchase Bitcoin at the strike price. However, the breakeven price is approximately $57,156, lower than the strike price of $66,000.

If Bitcoin is above $66,000 on the expiration date, Metaplanet will not need to execute any trades, effectively earning the premium. Metaplanet emphasizes that this strategy is a "target buy-in" method, providing another way to acquire Bitcoin without a change in fund usage.

Metaplanet Holds 860 Bitcoins, Stock Price Surges Over Fivefold This Year

After announcing the adoption of Bitcoin as its strategic reserve asset in May, Metaplanet has been aggressively purchasing Bitcoin in recent months. It currently holds 861.387 Bitcoins with an average cost of 9,313,428 Japanese Yen, approximately $62,506.

Metaplanet's stock price closed at 1,200 Japanese Yen on Wednesday, marking a 511% increase year-to-date. In July, it briefly surged to 3,000 Japanese Yen.