[NEWS] Metaplanet torade puts with Bitcoin strategy

Metaplanet, a Tokyo Stock Exchange Standard that aims to be a Japanese microstrategy, announced that it conducted a Bitcoin put transaction and earned a premium profit of approximately 214.55 million yen.

Metaplanet conducted a Bitcoin (BTC) put option sale transaction with QCP Capital, a digital asset trading company based in Singapore.

The put option sale transaction involved 223 contracts. The maturity date was December 27, 2024. The exercise price was 1 BTC, 62,000 US dollars (approximately 9,052,000 yen).

The option premium was 0.1075 BTC per option. A margin of 13,826,000 US dollars (approximately 2,018 million yen) was deposited.

The total premium received was 23.972 BTC. In Japanese yen, this is equivalent to approximately 214.55 million yen. The nominal yield is 10.75% and the annualized yield is 45.63%, which is an astonishing figure.

The initial capital of 13,826,000 USD deposited as margin was paid from the exercise fee of the 11th stock acquisition rights.

This transaction allows Metaplanet to take advantage of Bitcoin's volatility by earning premium income while maintaining a fully cash-collateralized position.

By shorting 223 Bitcoin put options, if the market price of Bitcoin falls below the strike price of $62,000 on the expiration date, Metaplanet will purchase Bitcoin at the same strike price, which will increase the balance of its holdings at the same time.

This investment strategy is in line with the company's ongoing Bitcoin financial strategy, which not only increases its Bitcoin holdings but also increases Bitcoin exposure and liquidity over the long term and strengthens its balance sheet. As a result, it will pave the way for operating profit to become profitable.

The margin will be used to purchase Bitcoin. Shorting put options is a strategy known in the stock market as "target buying".

It is another way to buy Bitcoin while earning premium returns.

The exercise of the 11th stock acquisition rights will not change the use of the funds raised.

Metaplanet will receive 23.972 BTC of Bitcoin, with an income price of 8,950,000 yen per BTC.

The president is from Goldman Sachs.

The current number of Bitcoins held is 530.717 BTC, with an average purchase price of 9,354,425 yen per BTC. The total purchase amount is 4,965 million yen.

Bitcoin is currently priced at $61,180 (approximately 8,932,280 yen), and this investment strategy is currently successful. It is expected that the company will continue to make profits by using put options in the future. This is an investment strategy unique to CEO Simon Gerovich, a former Goldman Sachs stock derivatives trader.

Reference: Metaplanet announcement
Image: Shutterstock

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