In a company notice dated October 16, Metaplanet announced its repurchase of 223 put option contracts valued at $62,000 from Singapore-based digital asset trading firm QCP Capital, reversing a previous sale of the same contracts.
Metaplanet initially sold these 223 put option contracts on October 3 and set to expire on December 27, 2024. The sale generated 23.97 BTC in option premiums, which the company recognized as revenue. Now, through the buyback, the firm will realize an additional revenue of ¥57.9 million, approximately $387,640, in premium from the options.
The company stated that the decision to repurchase from QCP Capital these put option contracts was part of a strategy to capitalize on Bitcoin’s volatility by adjusting the strike price to $66,000.
As of press time, Bitcoin’s price has surpassed $67,000 following a recent rally.
“By increasing the strike price, this approach allows for a higher yield potential while keeping in line with the company’s objectives to enhance Bitcoin holdings and support its path towards profitability,” the notice read.
However, the firm acknowledged the risks in the notice. It stated that by raising the strike price, it could be obligated to purchase Bitcoin at $66,000 if the price dips below that level by the options’ maturity date.
Metaplanet has gained the nickname “Asia’s MicroStrategy” due to its aggressive Bitcoin acquisitions since May 2024, a strategy aimed at diversifying and strengthening its asset treasury. This development comes as the firm’s shares soared by 15.7% on October 15, just after the announcement of its acquisition of its fifth Bitcoin acquisition since the beginning of the month. The purchase brought the firm’s total Bitcoin holdings to 855.5 BTC, approximately $56.1 million.
Notably, in August, the company secured a ¥1 billion ($6.8 million) loan at a 0.1% interest rate, intended for further Bitcoin purchases.
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