Japan’s Metaplanet Sold 233 BTC Put Options to Boost Its Bitcoin Reserves

Japan’s listed company Metaplanet has announced that the firm has sold 233 BTC (worth USD 14 Million) to QCP Capital, a digital asset trading company headquartered in Singapore. The company aims to capitalize on Bitcoin’s volatility by earning premium income of 23.97 BTC, and boost its bitcoin reserve while maintaining a fully cash-secured position.

Metaplanet announced the sale with an image reading, “By selling 223 Bitcoin put options, the Company is able to increase its Bitcoin holdings if the market price falls below the strike price of 62,000 USD per Bitcoin at maturity.”

Courtesy: Metaplanet X account

The step taken is expected to boost the firm’s Bitcoin reserves and also reinforce its balance sheet. Selling put options also aligns with the company’s ongoing financial strategy to strengthen long-term Bitcoin exposure and boost Metaplanet’s financial position, further aiding its profitability.

The process of selling put options is called “target buy” and is another method for gaining Bitcoin. Metaplanet assured that there is no change in the intended use of the funds.

“The source of the $13,826,000 deposited as margin mentioned above comes from the proceeds of the 11th stock acquisition rights exercise”, reads the announcement.

After the sale of put options, Metaplanet has 530.717 Bitcoin Holdings with an Average Purchase Price of 9,354,425 yen per BTC.

Also Read: Japan’s Metaplanet Boosts Bitcoin Reserve Adds ¥1 B Worth of BTC Holdings56