Metaplanet Inks Bitcoin Put Options Deal with QCP Capital

Metaplanet has upped its Bitcoin acquisition pursuit by entering a put options deal with QCP Capital.

Key Notes

Metaplanet and QCP Capital inks 223 Bitcoin put options deal.This deal pushes Metaplanet’s Bitcoin holdings to 530.717 BTC.The firm continues to follow MicroStrategy’s playbook.

Japanese financial firm Metaplanet Inc recently unveiled a notice of Bitcoin BTC $60 474 24h volatility: 1.7% Market cap: $1.19 T Vol. 24h: $44.07 B put options sales. According to its update, the Asian company entered into the Bitcoin options transaction with Singapore-based crypto asset trading firm QCP Capital.

For context, put options give the buyer the right, not the obligation, to sell a certain amount of the asset by the strike date before/on a scheduled expiration date. Buyers will exercise their selling rights if the BTC price eventually drops by the expiration date. This places the seller of the put option in a position to buy the Bitcoin from the holder at the agreed strike price.

Metaplanet Capitalizes on BTC Volatility

The Metaplanet-QCP Capital transaction aims to capitalize on BTC volatility by generating premium income while maintaining a fully cash-secured position.

*Metaplanet sells $BTC put options, earns 23.97 $BTC in premium income* pic.twitter.com/w8qO0fifr1

— Metaplanet Inc. (@Metaplanet_JP) October 3, 2024

Metaplanet sold 223 Bitcoin put options at a strike price of $62,000 per coin. It is worth noting that Bitcoin has a current market value of $61,374.72 after losing 0.59% of its worth in the last 24 hours. The Bitcoin put options offering is scheduled to mature by December 27, 2024. The Japanese firm might hit massive profits and increase its BTC holding if the coin’s market price falls below $62,000 by maturity.

This strategy enhances Metaplanet’s Bitcoin reserve and reinforces its balance sheet. Ultimately, this insurance with the firm’s ongoing financial strategy, strengthens long-term Bitcoin exposure. It will also improve the company’s financial position, supporting its path toward profitability.

The premium on each contract is approximately 0.1075 BTC. This totaled 23.972 BTC, equivalent to $1.4 million, for all the Bitcoin put options contracts offered to QCP Capital. The transaction also has a marginal collateral of $13,826,000.

Metaplanet Leans into MicroStrategy’s Bitcoin Acquisition Playbook

This transaction came only a few days after Metaplanet had significantly increased its Bitcoin holdings. On Tuesday, the firm acquired another 107.913 Bitcoin, valued at ¥1 billion, which is approximately $7 million. As a result of this recent acquisition, the Asian firm now holds more than 500 BTC.

In the first few days of September, Metaplanet added 38.464 BTC, worth 300 million yen (approximately $2 million), to its Bitcoin holdings. At the time, the company acquired its entire Bitcoin portfolio at an average price of $65,432 per BTC. These acquisitions prove Metaplanet’s commitment to using Bitcoin as a strategic reserve asset and signal the firm’s continued confidence in the cryptocurrency.

Regarding acquisition frequency, Metaplanet is in close competition with United States-based business intelligence and software firm MicroStrategy Inc (NASDAQ: MSTR). The latter launched its Bitcoin accumulation strategy in August 2022 and has amassed several Bitcoin running into billions of dollars.

After consistently purchasing Bitcoin, the Michael Saylor-led firm now holds 244,800 BTC, a significantly larger portfolio than Metaplanet’s current holding of over 530 BTC

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