Tokyo-listed investment firm Metaplanet Inc. has increased its Bitcoin holdings to 530.717 BTC, valued at approximately $32.4 million.
Japanese investment company Metaplanet increased its overall revenue from Bitcoin to 530.72 BTC by acquiring 23.97 Bitcoin through an options transaction with Singapore-based digital asset trading company QCP Capital.
Metaplanet disclosed in its notice dated October 3rd that it has entered into a Bitcoin options transaction with QCP Capital, a digital asset trading firm based in Singapore.
The announcement states that Metaplanet sold 223 contracts for $62,000 put options, with a December 27, 2024 expiration date. Metaplanet reported a profit of 23.97 BTC in option premium as income from this sale.
“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.
When combined with one of the company’s largest-ever single acquisitions, a $6.94 million buy, Metaplanet’s current Bitcoin holdings total 530.72, or $32,55 million by October 3.
The corporation increases its Bitcoin holdings if the market price drops below $62,000 at maturity by selling 223 Bitcoin put options. Metaplanet said:
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”
In an effort to tackle the economic difficulties, Metaplanet has kept adding to its Bitcoin holdings ever since the Japanese yen declined in value in May 2024.
Metaplanet has invested 4.96 billion yen since declaring that it will use Bitcoin as a reserve asset, plus an additional ¥215 million from the most recent put options transaction.
In addition to increasing its Bitcoin reserves, Metaplanet intends to use stock rights offers to generate an additional $70 million, with over 80% of the proceeds going into its Bitcoin strategy.
According to a June Nomura poll, Japanese investment managers are becoming more interested in researching cryptocurrency investments, as reflected in Metaplanet’s approach to Bitcoin.
Shigeru Ishiba, who was elected as Japan’s next prime minister on October 1, unveiled policy documents outlining his pro-blockchain plan to expand the country’s economy through local resources like farming and tourism.
