Metaplanet Gains $1.4 Million from Bitcoin Hedging Strategy

The Japanese public company Metaplanet received 23.972 BTC (~$1.46 million) as a premium from selling put options on its bitcoin holdings. QCP Capital facilitated the transaction.

“By selling 223 contracts, the firm will increase its digital gold reserves if prices fall below the strike price of $62,000 at the expiration on December 27,” the statement reads.

The sale of options entails the obligation to purchase coins if the specified condition occurs on the given date.

“Since the transaction is fully cash-secured, the company has reserved the required amount. There is no additional financial risk compared to direct bitcoin acquisition,” assured Metaplanet.

To secure the $13.8 million options short, the organization raised funds by exercising rights to purchase its shares.

This initiative aligns with a strategy aimed at strengthening long-term positions in the leading cryptocurrency.

Metaplanet directed the received premium to increase its bitcoin reserves to 530.717 BTC (~$32.4 million).

The company’s head, Simon Gerovich, explained that the inherent volatility of digital gold “creates opportunities to generate more coins.”

?ビットコインのプットオプション取引に関するお知らせ… https://t.co/7zvDq70xln

— Simon Gerovich (@gerovich) October 3, 2024

In early October, Metaplanet’s bitcoin holdings exceeded 500 BTC.

Back in August, Gerovich advocated for “always accumulating the first cryptocurrency.” Metaplanet utilizes borrowed capital for investments.