Japanese Investment Firm Metaplanet Inc. Raises Bitcoin Put Options Strike Price to $66,000

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%.

Japanese investment firm Metaplanet Inc. (TYO: 9240) has executed another Bitcoin put option roll-up, increasing the strike price to $66,000 in a transaction with QCP Capital. The move comes as Metaplanet seeks to capitalize on Bitcoin’s recent rally above $67,000.

The transaction sees 223 Bitcoin put option contracts rolled up from a $62,000 strike price to $66,000. The options, which expire on December 27, 2024, now carries an obligation for Metaplanet to buy Bitcoin at $66,000 per contract if the price falls below the strike.

QCP Capital, a leading digital asset market maker, is once again involved in the transaction, which adds an additional premium of 5.9 BTC to Metaplanet’s holdings.

The roll-up also increases Metaplanet’s nominal yield from the options to 13.40%, up from 10.75% with the previous strike price of $62,000. The company’s average acquisition price for Bitcoin across its holdings remains at 9.3 million yen per Bitcoin.

Metaplanet, nicknamed ‘Asia’s MicroStrategy,’ now has around 861.4 BTC in holdings, which are valued at approximately 8.02 billion yen ($74.1 million). The company has been using Bitcoin as a reserve asset since May 2024 to hedge against the yen’s volatility.

The firm’s aggressive Bitcoin holdings and premium income strategy has positioned it as the second most prominent Asia-listed company after Hong Kong-based Meitu to hold substantial BTC on its balance sheet.

The roll-up does not affect Metaplanet’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 increases Metaplanet’s obligation to pay more.

However, upon a market decline, Metaplanet would have to buy a Bitcoin for $66,000 per contract, amounting to $14.7 million. The company’s current margin exceeds $892,000, with additional collateral not yet posted.

The revenue from the latest put option transaction will be recognized as 5.9 BTC in the fiscal year ending December 2024. In addition to the 23.97 BTC gained from the original option sale on October 3, Metaplanet’s premium income for the period amounts to 29.88 BTC.

Both transactions have contributed significantly to the company’s fiscal performance, generating 272.4 million yen in premium income in yen. Metaplanet has stated that all funds are still allocated for future Bitcoin purchases, staying in line with its strategic roadmap.

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