Now Metaplanet accumulates 530 BTC, valued at 32.7 million dollars.
223 BTC were put up for sale in options that expire on December 27.
Metaplanet, a company nicknamed the ‘Japanese MicroStrategy’, announced this Thursday a new strategy to increase its bitcoin (BTC) reserves. They will do this by selling BTC options.
The company successfully performed a transaction with QCP Capital, a Singapore-based digital asset trading firm, selling BTC put options. This transaction resulted in a profit of 23.9 bitcoin for Metaplanet.
This option selling involved 223 contracts with a strike price of $62,000 per BTCwhich expire on December 27, 2024. Each contract generated a premium of 0.1075 BTC, adding a total of 23.97 BTC in premiums.
The margin guarantee for this transaction was USD 13,826,000, reflecting a nominal return of 10.75% and an annual return of 45.63%. This maneuver allows Metaplanet capitalize on bitcoin market volatilitygenerating premium income while maintaining a position fully collateralized with cash, according to what the company said.
With this strategy, Metaplanet seeks not only to increase its BTC reserves, but also to strengthen its balance sheet. When selling put options, the company may increase its BTC holding if the market price falls below USD 62,000 before the expiration date. This aligns with its long-term financial strategy to improve digital currency exposure and the company’s financial position.}
After this transaction, Metaplanet now owns a total of 530.7 bitcoin, valued at approximately $32.7 million. This announcement follows the recent purchase of 107 bitcoin, raising its total reserve to 506.74 BTC, as reported in CriptoNoticias.
The Japanese company follows the path of Michael Saylor, who has positioned MicroStrategy as one of the largest bitcoin accumulators, based on the belief that BTC is a crucial store of value for the future.
Michael Saylor, co-founder and former CEO of MicroStrategy, has been a proponent of Bitcoin, arguing its value as a digital store of value that protects against inflation and the volatility of fiat money.
His strategy consists of converting the company’s capital into bitcoin, believing that this digital asset will outperform other assets in long-term performance. This philosophy has inspired other companies to follow a similar path, seeing bitcoin not only as an investment, but as a comprehensive financial strategy.
What are options and how do they impact the price of bitcoin?
Bitcoin options are contracts that give the buyer the right, but not the obligation, to buy (call option) or sell (put option) BTC at a specific price before an expiration date.
These options are fundamental for the market because they allow investors manage risks and speculate on the future price of the currency without needing to own the underlying asset.
The existence of options adds liquidity to the market and facilitates complex trading strategies, such as spreads and short strangles, which can benefit from Bitcoin’s volatility.
Recently, 89,000 bitcoin options reached their expiration date, as CriptoNoticias reported. These maturities can have a significant impact on the price of the asset, especially if there is a high volume of options concentrated in a specific price range.
Traders adjust their positions before expiration, which can cause sharp movements in the market. The selling of options by Metaplanet reflects a calculated strategy to take advantage of these movements, seeking not only to profit from the volatility, but also to increase its bitcoin holdings.
This article was created using artificial intelligence and edited by a human Editor.