Metaplanet rolls up 223 contracts of Bitcoin put options, adds 5.90 BTC to their revenue

Japanese investment firm Metaplanet completed a roll-up transaction involving 223 contracts of Bitcoin put options, raising the strike price from $62,000 to $66,000 in the wake of Bitcoin’s bullish run.

According to an Oct. 16 company notice, Metaplanet has bought back 223 contracts of $62,000 put options from Singapore-based digital asset trading firm QCP Capital from a previous put options sale. The firm has proceeded to sell 223 new contracts with a strike price of $66,000.

This transaction has generated Metaplanet an additional ¥57.9 million or equal to $387,640 in premium put options, which the company recognizes as revenue.

In the notice, Metaplanet stated that the reason behind its decision to repurchase 223 put options contracts from QCP Capital is to capitalize on Bitcoin’s volatile nature by adjusting the strike price to $66,000. At the time of writing, the price of Bitcoin(BTC) has gone over $67,000 following its recent rally.

“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.

The firm also highlighted underneath the notice’s risk section that by adjusting the strike price, Metaplanet could be forced to buy Bitcoin at $66,000 if it settles below the price at maturity.

Combined with Metaplanet’s latest Bitcoin purchase on Oct. 15 worth $6.9 million, Metaplanet’s total Bitcoin holdings have amounted to 861.39 BTC or equal to $57.6 million based on current market prices.

CEO of Metaplanet, Simon Gerovich, remarked in an X post that the put options have added to their nominal yield on put options sales, granting Metaplanet an additional ¥57.9 million in premium, bringing the company’s total premium earnings to ¥272.5 million that will be booked as revenue this year.

On Oct. 3, Metaplanet entered a put options deal with QCP Capital. Metaplanet sold 223 contracts to QCP Capital worth $62,000 which expires on Dec. 27, 2024. This sale generated a profit of 23.97 BTC in option premium for Metaplanet.

Metaplanet has been dubbed “Asia’s MicroStrategy” due to its frequent Bitcoin purchases, further diversifying its holdings. Metaplanet made the decision to invest more in Bitcoin reserves back in May 2024 as a strategy to combat the economic challenges plaguing Japan’s yen.