Metaplanet adds BTC holdings after put options sale with QCP Capital

Japanese investment firm Metaplanet acquired 23.97 Bitcoin from an options transaction with QCP Capital, a Singapore-based digital asset trading firm, bringing Metaplanet’s total Bitcoin revenue at 530.72 BTC.

In the company’s Oct. 3 notice, Metaplanet announced that it has made a Bitcoin(BTC) options transactions deal with Singaporean digital asset trading firm QCP Capital.

According to the release, Metaplanet sold 223 contracts worth $62,000 put options which expires on Dec. 27, 2024. This sale made Metaplanet a profit of 23.97 BTC in option premium recognized as revenue.

“This transaction allows the company to capitalize on Bitcoin’s volatility by generating premium
income while maintaining a fully cash-secured position,” the company stated in its notice.

Combined with the company’s previous purchase worth $6.94 million, one of its biggest single purchases, Metaplanet currently owns 530.72 in Bitcoin holdings which amounts to $32,55 million by Oct. 3.

By selling 223 Bitcoin put options, the company gets an increase its Bitcoin holdings if the market price falls below $62,000 at maturity.

“This strategy not only enhances the company’s Bitcoin reserves but also reinforces its balance sheet, aligning with our ongoing financial strategy to strengthen long-term Bitcoin exposure,” said Metaplanet.

Since the weakening of Japan’s currency in May 2024, Metaplanet has continued to increase its Bitcoin holdings to combat the economic challenges.

Since announcing its decision to adopt Bitcoin as a reserve asset, Metaplanet has invested 4.96 billion yen with the addition of ¥215 million from the latest put options sale.

Aside from adding to its Bitcoin reserves, Metaplanet also plans to raise $70 million through stock rights offerings, vowing to allocate over 80% to its Bitcoin strategy.

Metaplanet’s Bitcoin strategy reflects a growing interest from Japanese investment managers, who have expressed interest in exploring crypto investments based on a June survey by Nomura.

On Oct. 1, Japan elected its new Prime Minister, Shigeru Ishiba, released policy documents that revealed his pro-blockchain strategy to boost the economy through local assets like food and tourism on a global scale.