Metaplanet Inc. Adopts Bitcoin Options Strategy

Metaplanet Inc. Leverages Bitcoin Options to Boost Holdings

Metaplanet Inc– Tokyo-listed Metaplanet Inc. is taking a unique approach to enhance its bitcoin (BTC) holdings, utilizing options instead of following the debt-driven accumulation strategy of U.S. counterpart Microstrategy. By leveraging the dynamics of bitcoin options, Metaplanet aims to maximize its investments while minimizing risk.

Strategic Sale of Bitcoin Put Options

On Tuesday, Metaplanet announced a significant transaction involving the sale of 223 contracts of bitcoin put options, set at a strike price of $62,000, with a maturity date of December 27. The deal, conducted with Singapore-based QCP Capital, yielded a premium of 23.972 BTC, approximately $1.44 million. To support this transaction, Metaplanet allocated $13.826 million as margin collateral, originating from its recent stock acquisition rights exercise. Each contract provided a premium of 0.1075 BTC, resulting in a nominal yield of 10.75% and an annualized yield of 45.63%.

How Put Options Work for Metaplanet

By selling these put options, Metaplanet plans to use the premium generated to acquire more bitcoin, thereby boosting its total holdings to 530.717 BTC, valued at around $32 million. A put option grants the buyer the right, but not the obligation, to sell the underlying asset at a predetermined price by a specific date. In this case, Metaplanet, as the put seller, is obligated to purchase bitcoin at $62,000 if the buyer chooses to exercise the option.

Should the price of bitcoin fall below $62,000 by the maturity date, the buyer is likely to exercise the option, compelling Metaplanet to purchase 223 BTC at the higher strike price. This would increase Metaplanet’s holdings despite potential market declines. Conversely, if bitcoin’s price remains above $62,000 by December 27, the buyer would likely let the option expire, allowing Metaplanet to retain the premium as profit while avoiding any obligation to purchase at the strike price.