- Metaplanet earns 23.97 BTC by selling 223 put options, enhancing its financial position.
- The transaction boosts Metaplanet’s Bitcoin holdings to 530.717 BTC with a high annualized yield.
- Metaplanet aims to increase its Bitcoin reserves if market conditions align with the strike.
Metaplanet Inc. has sold 223 Bitcoin put options to QCP Capital, a Singapore-based digital asset trading firm. This transaction led to the generation of a total premium income of 23.97 Bitcoin (BTC), allowing Metaplanet to strengthen its financial position and increase its Bitcoin holdings.
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The sale of these put options, all with a strike price of $62,000 and an expiration date of December 27, 2024, helped in profit making. The sale price was 0.1075 BTC per contract, resulting in a total premium of 23.972 BTC, or about $1.47 million at current Bitcoin prices.
The nominal yield for this transaction is 10.75%, while the annualized yield is 45.63%, showing the high income generated from the options sale. Metaplanet put up $13.826 million in margin collateral to secure the put option contracts.
Purpose and Strategic Impact of the Transaction
This sale of put options is part of Metaplanet’s plan to grow its Bitcoin holdings and take advantage of market fluctuations. If the price of Bitcoin falls below $62,000 in December 2024, Metaplanet will have to buy Bitcoin at that price, which will increase its reserves.
Read also: Metaplanet’s Bitcoin Bet Pays Off: Stock Soars 443% Despite BTC Dip
With this transaction, Metaplanet has a fully cash-secured position, meaning it can meet its obligations if the put options are exercised. The margin collateral acts as security if the options expire without being exercised.
Updated Bitcoin Holdings
Because of the premium earned from this sale, Metaplanet’s total Bitcoin holdings are now 530.717 BTC. The company’s average purchase price for Bitcoin is 9,354,425 yen per BTC.
In addition to the 23.97 BTC earned through this transaction, Metaplanet recently purchased an additional 107.913 BTC for 1 billion yen (approximately $6.6 million) at an average price of 9,266,724 yen per BTC, or around $61,932 USD.
At the time of writing, the price of Bitcoin was trading at $61,332.03, showing a drop of 0.60% in the previous day.
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