- Metaplanet boosts the strike price for Bitcoin put options to $66K, raising premium income.
- As market confidence rises, the business boosts its overall Bitcoin holdings to 861.387 BTC.
Metaplanet, a Japanese finance firm, has taken a substantial shift in its Bitcoin strategy, raising the strike price of its Bitcoin put options from $62,000 to $66,000. The modification, which is set to mature on December 27, 2024, attempts to increase the firm’s option selling yield while also earning premium income.
CEO Simon Gerovich stated that the updated strategy is likely to increase premium income by 57.9 million yen ($388,123), boosting the company’s total premium earnings for the year to 272.5 million yen ($1.83 million). This is an important economic benefit as the company continues to profit from Bitcoin’s price volatility.
Metaplanet’s Strategic BTC Moves
Metaplanet and QCP Capital, a Singaporean digital asset trading firm, set out into a Bitcoin put options transaction earlier in October. The Japanese organization sold 223 Bitcoin put option contracts with a strike price of $62,000, which would expire at the end of 2024. This enabled Metaplanet to increase its nominal yield by 2.65%, to 13.40%.
The market appears to have reacted favorably to Metaplanet’s financial approach, as the company’s stock price increased by 7%. Meanwhile, Metaplanet has continued its aggressive acquisition of Bitcoin, lately purchasing an additional 106.976 BTC worth around 1 billion yen ($6.7 million). This acquisition raised the firm’s total Bitcoin holdings to 861.387 BTC, for a total purchase value of 8.022 billion yen.
Metaplanet stated that this move allows them to boost income potential while also aligning with their long-term goal of developing an adequate Bitcoin reserve.
Metaplanet earned the nickname Asia’s MicroStrategy for its ongoing Bitcoin accumulation. The firm strengthened its reserves in May 2024 as a strategic response to Japan’s economic concerns and the yen’s volatility.
As Metaplanet continues its Bitcoin acquisition, the cryptocurrency has recovered from previous lows. Bitcoin (BTC) is currently trading at $67.6K, up over 2.90% in the last 24 hours. Trading volume has also increased, up 30.95% to $50.64 billion.
Metaplanet’s recent activities indicate its belief in Bitcoin’s ability to serve as a hedge against inflation and currency depreciation. The company’s business decisions seem to be generating large returns while also strengthening its position in the cryptocurrency market.
