Japan’s Metaplanet Profits 23.9 BTC from Selling 223 Bitcoin Put Options

CryptoNews.com

2024-10-02 23:03:39

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Bitcoin options Metaplanet

The firm has now accumulated 530.7 Bitcoin, valued at about 4.96 billion yen ($34m). Last updated:

October 3, 2024 03:03 EDT

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 3, 2024 03:03 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Japanese investment firm Metaplanet said it generated 23.9 Bitcoin ($1.4m) in premium income from selling 223 Bitcoin put options to QCP Capital, a Singapore-based digital asset trading firm.

The premium collected amounted to 0.1075 Bitcoin per contract, the company said in a statement Thursday.

Metaplanet stated that this deal allows it to capitalize on Bitcoin’s volatility, earning premium income while maintaining a fully cash-backed position. By selling 223 Bitcoin put options, Metaplanet is also positioned to increase its Bitcoin holdings if the market price falls below the $62,000 strike price at maturity.

*Metaplanet sells $BTC put options, earns 23.97 $BTC in premium income* pic.twitter.com/w8qO0fifr1

— Metaplanet Inc. (@Metaplanet_JP) October 3, 2024

“This strategy not only enhances the company’s Bitcoin reserves but also reinforces its balance sheet, aligning with our ongoing financial strategy to strengthen long-term Bitcoin exposure and improve the company’s financial position, supporting its path toward profitability,” it added.

A put option gives the buyer the right, but not the obligation, to sell a certain amount of Bitcoin at a set strike price before or on a specific expiration date.

If Bitcoin’s price drops below the strike price by expiration, the buyer will usually exercise this right. As a result, the seller of the put option must buy the Bitcoin from the holder at the agreed strike price.

This week, Metaplanet announced it had acquired an additional 107.9 Bitcoin, worth 1 billion yen ($7m). In total, Metaplanet has now accumulated 530.7 Bitcoin, valued at around 4.96 billion yen ($34m).

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