Japanese investment firm Metaplanet Inc. raised the strike price of its Bitcoin put options to $66,000. The transaction with QCP Capital increased the company’s nominal yield by 2.65% to 13.40%.
An additional premium income of 5.9 BTC raises the firm’s Bitcoin holdings to 861.4 BTC.
QCP Capital’s Execution of an Options Roll-up With a Higher Strike Price
Metaplanet rolled up 223 Bitcoin put option contracts, moving from a $62,000 strike price to $66,000. The transaction, completed with QCP Capital today, October 16, aligns with the company’s strategy to take advantage of Bitcoin’s recent rally above $67,000.
The expiration date of both sets of options is December 27, 2024. This additional premium of 5.9 BTC amounted to ¥ $57.9 million ($387,640). Due to the roll-up, the nominal yield also increased from 10.75% to 13.40%.
Bitcoin Holdings Strengthened to Support Metaplanet’s Long-Term Strategy
The additional 5.9 BTC in premium income has boosted Metaplanet’s holdings to 861.4 BTC. Across its holdings, the average acquisition price for Bitcoin is 9.3 million yen per Bitcoin, reflecting a consistent strategy of accumulating BTC over time.
Bitcoin holdings of the company are around ¥8.02 billion in total. Metaplanet has been using Bitcoin as a reserve asset since May 2024 to hedge against the yen’s volatility. Still, the firm is also expanding its Bitcoin exposure by using premium income from put option sales to fund some of its acquisitions.
Meanwhile, in another development, Metaplanet purchased 108.78 Bitcoin. On October 1, the firm purchased approximately 506 tokens that cost ¥ 9,266,724 per Bitcoin.
The aggressive Bitcoin holdings have earned Metaplanet the nickname ‘Asia’s MicroStrategy,’ as it is the second most prominent Asia-listed company after Hong Kong-based Meitu.
Risk Management and Financial Position Remain Unchanged
The roll-up does not affect the company’s margin collateral of $13.8 million from the Board having exercised prior stock acquisition rights. If Bitcoin drops below $66,000 before December 27, the higher strike price means the obligation to pay more increases.
However, upon a market decline, Metaplanet would have to buy a Bitcoin for $66,000 per contract, amounting to $14.7 million. Additional collateral has yet to be posted, though the current margin exceeds $892,000.
Metaplanet’s Additional Premium Income to Bolster 2024 Revenue
The revenue from the latest put option transaction will earn 5.9 BTC and be recognized as such in the fiscal year ending December 2024. In addition to the 23.97 BTC gained from the original option sale on October 3rd, Metaplanet’s premium income for the period amounts to 29.88 BTC.
Both transactions have contributed significantly to the company’s fiscal performance, generating Yen 272.4 million in premium income in yen. Metaplanet stated that all funds are still allocated for future Bitcoin purchases, staying in line with its strategic roadmap.
