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Bitcoin funding agency Metaplanet stated it offered 233 BTC put choices and earned a premium of 23.97 BTC, in accordance with an Oct. 3 assertion.
The agency acknowledged it offered 223 contracts for $62,000 BTC put choices, set to run out on Dec. 27, 2024. These contracts had been totally backed by $13.8 million generated from Metaplanet’s eleventh inventory acquisition rights train.
A put choice is a sort of monetary contract that provides the client the proper, however not the duty, to promote a particular inventory or asset at a set worth (referred to as the strike worth) inside a particular time interval.
Every contract earned Metaplanet 0.1075 BTC in premiums, accumulating to a complete of 23.97 BTC. This earnings introduced the agency’s whole Bitcoin holdings to 530.72 BTC, acquired at a price of ¥4.965 billion (round $33.8 million).
Metaplanet revealed it had entered into this settlement with QCP Capital, a Singapore-based digital asset buying and selling agency.
Why Metaplanet is pursuing this technique
Metaplanet defined that its purpose was to leverage Bitcoin’s volatility to generate earnings whereas maintaining its cash-secured place. It acknowledged:
“This technique not solely enhances the Firm’s Bitcoin reserves but additionally reinforces its steadiness sheet, aligning with our ongoing monetary technique to strengthen long-term Bitcoin publicity and enhance the Firm’s monetary place, supporting its path towards profitability.”
Metaplanet CEO Simon Gerovich highlighted the technique’s alignment with the corporate’s broader objectives. He emphasised that this method permits them to develop their Bitcoin holdings with out solely counting on direct purchases.
Gerovich defined that whereas most of their property stay in Bitcoin, utilizing some for choices methods helps generate extra earnings. This twin method permits them to extend holdings whereas benefiting from a gentle earnings stream.
The technique additionally helps Metaplanet’s intention to generate annual earnings and improve shareholder worth, all whereas sustaining its give attention to Bitcoin.
He concluded:
“Metaplanet stays dedicated to being a Bitcoin-only firm, centered on maximizing our long-term publicity to this transformative asset. By using each direct holding and yield-generating methods, we place ourselves to capitalize on Bitcoin’s development potential whereas sustaining a secure and worthwhile basis.”