Japanese investment firm Metaplanet Inc. has restructured its bitcoin put options, raising the strike price from $62,000 to $66,000, as part of its strategy to increase returns and capitalize on its bullish outlook for Bitcoin.
The adjustment was disclosed on October 18, with the Tokyo-listed company announcing the decision to maintain the same maturity date of December 27. CEO Simon Gerovich explained that the move generated an additional JPY 57.9 million ($388,000) in premiums, bringing the total premium earnings for the year to JPY 272.5 million ($1.8 million).
Strategic Options Roll-Up for Higher Yield
A roll-up is a strategy in which an investor closes existing options and opens new ones with a higher strike price, aiming for greater returns. In Metaplanet’s case, the company:
- Repurchased 223 bitcoin put options with a $62,000 strike price.
- Simultaneously sold 223 new options at a $66,000 strike price.
The firm maintained its collateral at $13.8 million, sourced from a previous exercise of stock acquisition rights. As part of the roll-up, Metaplanet earned 5.9 BTC in aggregate premiums.
“This adjustment increases the nominal yield on the options by 2.65%, bringing the total yield to 13.4%,” Metaplanet said in a statement. “The new strategy allows for enhanced revenue potential while aligning with the company’s goal of accumulating bitcoin holdings and improving profitability.”
Recent Bitcoin Investments
Metaplanet has actively increased its bitcoin reserves in recent months. On October 17, it purchased 106.976 BTC (worth approximately $6.7 million) to raise its total holdings to 855.478 BTC, valued at around $57.4 million.
Market Response and Stock Performance
Following the announcement, Metaplanet’s shares surged 6.88% on Wednesday, trading at 1,181 yen in the afternoon session on the Tokyo Stock Exchange. Meanwhile, the Nikkei 225 index declined 1.77%.
Bitcoin has risen 2.57% over the past 24 hours to trade at $67,097 at the time of writing.
Competitive Landscape
Metaplanet’s approach mirrors strategies employed by MicroStrategy, which leads as the largest corporate bitcoin holder with 252,220 BTC. Marathon Digital follows with 26,842 BTC, according to BitcoinTreasuries data.
The company’s latest moves reflect its commitment to using bitcoin as a strategic reserve asset, reinforcing its place among firms with significant cryptocurrency holdings.
