Metaplanet Expands Bitcoin Holdings with Strategic Options Deal
Crypto.news2 months ago
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Metaplanet Expands Bitcoin Holdings with Strategic Options Deal

General Bitcoin News
metaplanet
bitcoin
qcpcapital
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Summary:

  • Metaplanet acquires 23.97 Bitcoin from QCP Capital, raising total holdings to 530.72 BTC.

  • Transaction involved selling 223 put options for $62,000, set to expire on December 27, 2024.

  • Profit of 23.97 BTC recognized from option premiums, emphasizing strategy to capitalize on Bitcoin's volatility.

  • Total Bitcoin assets valued at approximately $32.55 million as of October 3.

  • Plans to raise $70 million through stock rights offerings, dedicating 80% to Bitcoin strategy.

Metaplanet adds BTC holdings after put options sale with QCP Capital

Japanese investment firm Metaplanet has recently acquired 23.97 Bitcoin through an options transaction with QCP Capital, a digital asset trading firm based in Singapore. This acquisition brings Metaplanet's total Bitcoin holdings to 530.72 BTC.

In a notice dated October 3, Metaplanet disclosed that it sold 223 put options contracts valued at $62,000, which are set to expire on December 27, 2024. This transaction yielded a profit of 23.97 BTC in option premiums 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,” stated the company.

With this latest acquisition, Metaplanet's Bitcoin assets, which include a previous purchase worth $6.94 million, now total approximately $32.55 million as of October 3. By selling these put options, the company positions itself to increase its Bitcoin holdings should the market price fall 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,” Metaplanet added.

Since the depreciation of the Japanese yen in May 2024, Metaplanet has actively expanded its Bitcoin holdings to mitigate economic challenges. The firm has invested a total of 4.96 billion yen, including ¥215 million from the latest options sale.

In addition to boosting its Bitcoin reserves, Metaplanet plans to raise $70 million through stock rights offerings, committing over 80% of the funds to its Bitcoin strategy. This reflects a growing trend among Japanese investment managers, as indicated by a June survey conducted by Nomura.

Furthermore, following Japan's recent election of new Prime Minister Shigeru Ishiba, who has outlined a pro-blockchain strategy, Metaplanet's initiatives align with a broader interest in cryptocurrency investments within the country.

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