Bitcoin funding agency Metaplanet stated it bought 233 BTC put choices and earned a premium of 23.97 BTC, in line with an Oct. 3 assertion.
The agency said it bought 223 contracts for $62,000 BTC put choices, set to run out on Dec. 27, 2024. These contracts have been absolutely backed by $13.8 million generated from Metaplanet’s eleventh inventory acquisition rights train.
A put possibility is a sort of monetary contract that provides the customer the suitable, however not the duty, to promote a selected inventory or asset at a set worth (known as the strike worth) inside a selected time interval.
Every contract earned Metaplanet 0.1075 BTC in premiums, accumulating to a complete of 23.97 BTC. This revenue introduced the agency’s whole Bitcoin holdings to 530.72 BTC, acquired at a value of ¥4.965 billion (round $33.8 million).
Metaplanet revealed it had entered into this settlement with QCP Capital, a Singapore-based digital asset buying and selling agency.
Why Metaplanet is pursuing this technique
Metaplanet defined that its purpose was to leverage Bitcoin’s volatility to generate revenue whereas preserving its cash-secured place. It said:
“This technique not solely enhances the Firm’s Bitcoin reserves but additionally reinforces its steadiness sheet, aligning with our ongoing monetary technique to strengthen long-term Bitcoin publicity and enhance the Firm’s monetary place, supporting its path towards profitability.”
Metaplanet CEO Simon Gerovich highlighted the technique’s alignment with the corporate’s broader objectives. He emphasised that this method permits them to develop their Bitcoin holdings with out solely counting on direct purchases.
Gerovich defined that whereas most of their belongings stay in Bitcoin, utilizing some for choices methods helps generate extra revenue. This twin method permits them to extend holdings whereas benefiting from a gradual revenue stream.
The technique additionally helps Metaplanet’s purpose to generate annual earnings and enhance shareholder worth, all whereas sustaining its give attention to Bitcoin.
He concluded:
“Metaplanet stays dedicated to being a Bitcoin-only firm, centered on maximizing our long-term publicity to this transformative asset. By using each direct holding and yield-generating methods, we place ourselves to capitalize on Bitcoin’s development potential whereas sustaining a secure and worthwhile basis.”