Japanese investment firm Metaplanet announced that it made 23.9 Bitcoin ($1.4 million) in premium income from selling 223 Bitcoin Put Options to QCP capital.
QCP Capital is a Singaporean-based digital asset trading firm that just bought the BTC put options from Metaplanet.
Metaplanet announced this deal with the profit they made from it on their X page while giving a thorough breakdown of the deal.
According to their announcement, the premium collected amounted to 0.1075 Bitcoin per contract.
Metaplanet went ahead to explain why they are doing the deal and the investment strategy they hope to employ.
The Japanese firm stated that the deal allows them to capitalize on Bitcoin’s volatility, earning premium income while maintaining a fully cash-backed position.
Metaplanet selling 223 Bitcoin put options, positions the firm to increase its Bitcoin holdings if the market price falls below the $62,000 strike price 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 and improve the company’s financial position, supporting its path toward profitability,” it added.
Metaplanet Increases Bitcoin Holdings
Besides the deal between Metaplanet and QCP capital, Metaplanet also announced that it has increased its Bitcoin holdings. The Japanese firm has added an additional 107.9 Bitcoin worth $7 million to its Bitcoin stash. Metaplanet with its latest acquisition has now accumulated 530.7 Bitcoin, valued at around 4.96 billion yen ($34m).
Michael Saylor’s Microstrategy still remains the largest corporate holder of Bitcoin with a staggering 252,220 BTC worth about $9.91 billion in their possession.
What is Put Option?
A put option is a contract giving the option buyer the right, but not the obligation, to sell — or sell short — a specified amount of an underlying security at a predetermined price within a specified time frame. This predetermined price at which the buyer of the put option can sell the underlying security is called the strike price.
Put options are traded on various underlying assets, including stocks, currencies, bonds, commodities, futures, and indexes. A put option can be contrasted with a call option, which gives the holder the right to buy the underlying security at a specified price, either on or before the expiration date of the option contract.
What to know
- Michael Saylor of Microstrategy in his speech during the Bitcoin conference in Nashville made a case for the durability of digital assets and how they harbor intrinsic value compared to other investment vehicles.
- Metaplanet decided to make Bitcoin and cryptocurrency part of their strategic investment reserve early this year. At the time of report, they have $34 million worth of BTC assets.
