Japanese investment firm Metaplanet completed a roll-up transaction involving 223 contracts of Bitcoin put options, raising the strike price from $62,000 to $66,000 in the wake of Bitcoin’s bullish run.
According to an Oct. 16 company notice, Metaplanet has bought back 223 contracts of $62,000 put options from Singapore-based digital asset trading firm QCP Capital from a previous put options sale. The firm has proceeded to sell 223 new contracts with a strike price of $66,000.
This transaction has generated Metaplanet an additional ¥57.9 million or equal to $387,640 in premium put options, which the company recognizes as revenue.
In the notice, Metaplanet stated that the reason behind its decision to repurchase 223 put options contracts from QCP Capital is to capitalize on Bitcoin’s volatile nature by adjusting the strike price to $66,000. At the time of writing, the price of Bitcoin(BTC) has gone over $67,000 following its recent rally.
“By increasing the strike price, this approach allows for a higher yield potential while keeping in line with the company’s objectives to enhance Bitcoin holdings and support its path towards profitability,” stated the company.
The firm also highlighted underneath the notice’s risk section that by adjusting the strike price, Metaplanet could be forced to buy Bitcoin at $66,000 if it settles below the price at maturity.
Combined with Metaplanet’s latest Bitcoin purchase on Oct. 15 worth $6.9 million, Metaplanet’s total Bitcoin holdings have amounted to 861.39 BTC or equal to $57.6 million based on current market prices.
CEO of Metaplanet, Simon Gerovich, remarked in an X post that the put options have added to their nominal yield on put options sales, granting Metaplanet an additional ¥57.9 million in premium, bringing the company’s total premium earnings to ¥272.5 million that will be booked as revenue this year.
On Oct. 3, Metaplanet entered a put options deal with QCP Capital. Metaplanet sold 223 contracts to QCP Capital worth $62,000 which expires on Dec. 27, 2024. This sale generated a profit of 23.97 BTC in option premium for Metaplanet.
Metaplanet has been dubbed “Asia’s MicroStrategy” due to its frequent Bitcoin purchases, further diversifying its holdings. Metaplanet made the decision to invest more in Bitcoin reserves back in May 2024 as a strategy to combat the economic challenges plaguing Japan’s yen.
Japanese investment firm Metaplanet continues to boost its Bitcoin holdings by purchasing 106.97 BTC ($6.9 million) amidst the ongoing Bitcoin rally.
The hotel operator turned investment firm announced in an Oct. 15 notice that it has purchased an additional ¥1 billion or equal to $6.9 million worth of Bitcoin(BTC). Metaplanet’s latest BTC purchase brings their total crypto holdings to 855.48 BTC or $56 million.
On the day of purchase, Bitcoin soared by 2.06%, crossing the $65,000 threshold. This is the first time Bitcoin has reached that level since Sept. 30, rising over 10% from its lowest level this month and by 32% compared to its August low, signaling that it has entered a bull market.
At the time of writing, Bitcoin is trading hands at $65,233 according to data from crypto.news. In the past 24 hours, Bitcoin has reached a peak of $66,486 and sustained a market cap of $1.28 trillion. This surge coincided with a strong rally in the global equity market after Chinese officials announced that they will introduce a number of stimulus to support the property sector and government plans to boost spending.
Throughout this month, Metaplanet has been making frequent purchases of BTC in bulks of ¥1 billion, further diversifying its holdings. Metaplanet’s last ¥1 billion investment into Bitcoin occurred on Oct. 11. This brough the company’s holdings in cryptocurrency to 748.50 BTC.
In the past year, Metaplanet has continued to add to its Bitcoin holdings, following in the footsteps of companies like Microstrategy, Tesla, and Marathon Digital.
“Expect us to take up more space soon alongside some Bitcoin titans!” Gerovich wrote on his X post on Oct. 11.
In May 2024, Metaplanet announced its plans to invest more funds into its Bitcoin holdings as a way to combat economic challenges plaguing Japan, such as high government debt levels, negative real interest rates, and a depleting national currency.
Aside from Metaplanet, a number of Japanese investment firms have expressed interest in investing in crypto. Over 500 investment managers in Japan have considered investing in digital assets, according to a survey conducted by Nomura in June 2024.
Samara Asset Group will issue a €30 million ($32.8 million) bond through Pareto Securities, which it will use to expand its Bitcoin reserves and diversify its holdings.
According to the investment firm’s press release on Oct. 14, Samara Asset Group announced it intends to buy additional stakes in alternative investment funds as well as increase its Bitcoin(BTC) holdings.
Samara has mandated Pareto Securities to manage bond issuance, set to arrange a series of fixed income investor meetings for a bond of up to €30 million euros in senior secured Nordic bond. The bond will be listed on unregulated Oslo and Frankfurt stock exchanges, with a minimum subscription requirement of €100,000 in allocated amount.
CEO of Samara Asset Group, Patrick Lowry, stated that Bitcoin is the investment firm’s primary treasury reserve asset and that he is looking forward to using the the proceeds from the bond to acquire more Bitcoin.
“The proceeds will allow Samara to further expand and solidify its already robust balance sheet as we diversify into new emerging technologies through new fund investments,” said Lowry.
In an X post announcing the move, Lowry stated that that the publicly-listed firm will use the funds acquired from the bond to “invest in innovative tech through managers and builders, and to increase our Bitcoin treasury”.
“We are forever HODL’ers and believe technology best drives humanity forward!” wrote Lowry.
He added in a separate post that he hopes someday Samara will be able to hold as much Bitcoin reserves as Microstrategy, the largest corporate BTC holder in the U.S with more than $458 million worth of BTC in their reserves.
At publicly-listed @Samara_AG_, we are issuing up to €30 million in Bonds to invest in innovative tech through managers and builders, and to increase our #Bitcoin treasury!
On the day of the announcement, Samara Asset Group’s share price was up over 6% at €2.04 according to Bloomberg’s data.
Christian Angermayer, member of Samara’s Advisory Committee, said that Samara aims to drive humanity forward through innovation by “seeding the world’s best managers and builders”. In accordance with their mission, the firm intends to increase their holdings in Bitcoin.
“With this new dry powder, we are excited to invest in and partner with the builders of tomorrow’s most disruptive technologies and grow our Bitcoin position,” said Angermayer.
Japanese investment firm Metaplanet acquired 23.97 Bitcoin from an options transaction with QCP Capital, a Singapore-based digital asset trading firm, bringing Metaplanet’s total Bitcoin revenue at 530.72 BTC.
In the company’s Oct. 3 notice, Metaplanet announced that it has made a Bitcoin(BTC) options transactions deal with Singaporean digital asset trading firm QCP Capital.
According to the release, Metaplanet sold 223 contracts worth $62,000 put options which expires on Dec. 27, 2024. This sale made Metaplanet a profit of 23.97 BTC in option premium recognized as revenue.
“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.
Combined with the company’s previous purchase worth $6.94 million, one of its biggest single purchases, Metaplanet currently owns 530.72 in Bitcoin holdings which amounts to $32,55 million by Oct. 3.
By selling 223 Bitcoin put options, the company gets an increase its Bitcoin holdings if the market price falls below $62,000 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,” said Metaplanet.
Since the weakening of Japan’s currency in May 2024, Metaplanet has continued to increase its Bitcoin holdings to combat the economic challenges.
Since announcing its decision to adopt Bitcoin as a reserve asset, Metaplanet has invested 4.96 billion yen with the addition of ¥215 million from the latest put options sale.
Aside from adding to its Bitcoin reserves, Metaplanet also plans to raise $70 million through stock rights offerings, vowing to allocate over 80% to its Bitcoin strategy.
Metaplanet’s Bitcoin strategy reflects a growing interest from Japanese investment managers, who have expressed interest in exploring crypto investments based on a June survey by Nomura.
On Oct. 1, Japan elected its new Prime Minister, Shigeru Ishiba, released policy documents that revealed his pro-blockchain strategy to boost the economy through local assets like food and tourism on a global scale.
Japanese investment firm Metaplanet has secured a 1 billion yen loan, the entire amount of which will be used to buy Bitcoin (BTC).
Details Metaplanet shared in an Aug. 8 post on X show that the lender is MMXX Ventures, which itself holds shares in Metaplanet. The loan term will run for six months starting Aug. 8 and will attract an interest rate of 0.1% per annum.
The Tokyo Exchange-listed company is expected to repay the collateral-free loan in one lump sum after the loan period elapses.
Were Metaplanet to buy Bitcoin (BTC) right now, the loan amount, which amounts to $6.8 million at current exchange rates, could get it about 119 BTC, with one BTC currently priced at $57,170.
Metaplanet’s announcement comes only days after the investment company said it intended to raise $70 million through a stock rights offerings, with more than 80% of that amount earmarked for buying Bitcoin.
The loan and stock rights offerings are part of Metaplanet’s plan to grow its crypto holding, which is reportedly at 246 BTC, worth just north of $14 million. The company is looking to hedge its long-term growth by leveraging Bitcoin’s potential long-term appreciation, with some analysts predicting the cryptocurrency’s price could go as high as $1 million in the next decade.
This move is quite similar to what MicroStrategy has been doing in the last few years. The U.S. company currently holds more than 79,000 BTC, which is valued at about $4.5 billion. MicroStrategy CEO Michael Saylor, on Aug. 7, revealed that he personally owns Bitcoin worth more than $1 billion, meaning he could hold as much as 20,000 BTC in his trove.
JUST IN: Michael Saylor says he personally owns more than $1 billion worth of #Bitcoin.
Meanwhile, the price of Bitcoin has gone up slightly in the last 24 hours. At the time of writing, it showed a 0.7% improvement from the previous day, and had registered a 24 hour trading volume of $43.5 billion, making it the second-most traded digital asset after Tether (USDT).
Kyiv police have detained four men for the abduction and murder of a 29-year-old foreigner.
The crime was premeditated and was motivated by nearly 3 Bitcoin (BTC). The National Police of Ukraine reported the incident in the Solomianskyi district in Kyiv, Ukraine after residents heard screams and saw several men beating and dragging a man into a car around midnight.
A large-scale police operation was promptly launched in Kyiv and its surrounding regions to locate and apprehend the suspects.
Details of the crypto murder
The suspects, aged between 24 and 29, meticulously planned the abduction. After discovering the victim owned BTC, they followed him to his home. Upon his return, they attacked him and forcibly took him to a deserted structure in the Kyiv region, according to censor.net.
At the secluded location, the suspects coerced the victim into transferring his BTC into their crypto wallet before strangling him. To cover their tracks, they altered the car’s license plates and appearance, buried the body in a forest, and converted the stolen crypto into cash.
The KORD special unit, along with law enforcement officers, successfully detained the suspects. During the operation, the police seized money, the vehicle used in the crime, and other crucial evidence.
The case is currently under investigation, with charges of robbery, kidnapping, murder for profit, and crime concealment filed against the suspects. The swift and coordinated police response was instrumental in solving this brutal crime.
A recent Bitfinex Alpha report shows a shift in Bitcoin ownership. Short-term investments surge, driven by the popularity of spot Bitcoin ETFs, while long-term holders remain confident in the market.
Recently, there has been a notable change in Bitcoin (BTC) ownership in the crypto market, especially among short-term holders.
Short-term Bitcoin investors, meaning those typically holding Bitcoin for less than 155 days, have significantly increased their activity. Their combined holdings rose from 2.2 million BTC in January to more than 3.4 million BTC by mid-April — that’s nearly a 55% increase.
According to the report, the increase in short-term holders indicates a strong level of investment in BTC, driven by the launch and growing popularity of spot Bitcoin ETFs. The concentration of these brief asset holdings near the current market price indicates substantial investment activity at this particular price point. However, short-term holders also lead to vulnerability and price fluctuations, which can lead to potential risks or price drops.
This short-term holder number steadily rises due to new players entering the market and buying Bitcoin. However, the price stays the same because older coins are being distributed. The market is still resetting, and the ,000-70,000 price point will be the new floor for BTC, much like ,000 became a base in 2020.
It looks like we still have overhang from last cycle.
Short term holders realized price is steadily rising as new players enter the market and Buy #Bitcoin. Hedge funds, Pension Funds, Banks etc.
But the price isn’t taking off because older coins are being distributed.
— Thomas | heyapollo.com (@thomas_fahrer) June 12, 2024
The supply held by short-term holders currently stands at approximately 3.3 million BTC, a slight decrease from the mid-April peak. This decrease is due to the market correction in March that occurred after Bitcoin reached its all-time high.
Bullish sentiment for long-term BTC holders
On the other hand, long-term Bitcoin holders are demonstrating a remarkable show of confidence in the market. After Bitcoin achieved a new all-time high of ,666 in March, many long-term holders sold significant amounts of their BTC.
Recent data shows that the trend of selling Bitcoin has stopped, and instead, long-term holders are now starting to accumulate Bitcoin. The amount of Bitcoin held by investors for over a year has remained almost unchanged, indicating that these investments are being held onto rather than being actively traded.
STH hit breakeven with the latest $BTC dip, marking a potential reaction zone.
The reaction’s intensity is unclear, but long-term holders can hold steady.
Analyzing Bitcoin and STH together hints at a short-term bottom likely forming this week. pic.twitter.com/IVgTHcWBOZ
Furthermore, just about 0.03 % of the supply held by long-term investors comprises coins that were bought at prices higher than the current spot price. In the initial stages of a bull market, it’s common to see long-term investors holding onto their profitable positions.
Bitcoin whales are also accumulating Bitcoin at a pace reminiscent of the pre-2020 bull run, leading to a new historical high in their Bitcoin balance.
Want to know what are the best coins to invest for beginners? Read our guide to reputable cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and more.
Dipping your toes into cryptocurrency can feel overwhelming, especially with so many options out there. However, experts suggest that starting with well-established and reputable digital assets can make the process smoother.
To help you get started, we have compiled a beginner-friendly guide highlighting five of the best cryptocurrencies for beginners to invest in, considering their stability, market value, and potential for growth.
Table of Contents
Bitcoin (BTC)
Bitcoin is the oldest and most valuable cryptocurrency on the market, making it a solid choice for beginners. As of June 4, 2024, Bitcoin’s market capitalization exceeded .35 trillion, a figure representing over half of the entire crypto market’s value.
First-time crypto investors should consider Bitcoin as an investment option because of the following reasons:
Widespread availability: Bitcoin is available on nearly all crypto exchanges and many conventional brokerage platforms, making it a near-perfect gateway cryptocurrency for beginners.
Growing acceptance: More businesses around the world are accepting BTC for transactions, and it’s even recognized as legal tender in countries like El Salvador and the Central African Republic (CAR).
Strong growth potential: Recent developments, such as the launch of spot Bitcoin exchange-traded funds (ETFs), have driven Bitcoin prices higher, even leading to it hitting a new all-time high price of ,750 on March 14. Some experts have even predicted that the price of Bitcoin could reach over a million dollars by 2030.
Bitcoin’s established presence and continuous growth make it an excellent starting point for new crypto investors. While the price of one Bitcoin might be a bit high for the average investor, it is possible to buy smaller portions of it for much lower prices.
Ethereum (ETH)
Although having a much more modest market capitalization compared to Bitcoin, Ethereum is a powerhouse among altcoins and a similarly great option for crypto beginners.
Technically known as Ether, this cryptocurrency is the second largest by market cap and has a significant role in both the decentralized finance (defi) and decentralized applications (dapps) ecosystems.
For those wondering which crypto is best for beginners, here are a few reasons why Ethereum should be a strong contender for your first crypto investment:
Defi dominance: As stated previously, Ethereum is the backbone for many decentralized finance protocols and applications, which drives a high demand for ETH. These applications rely on Ethereum’s blockchain to operate, making ETH a crucial part of the dapp and defi spaces.
High total value locked (TVL): As of the time of this writing, Ethereum holds the largest portion of the total value locked (TVL) in various networks, indicating its widespread use and trust. TVL refers to the cumulative value of all the crypto assets deposited in various defi protocols. Per DappRadar, Ethereum’s current TVL stands at .01 billion, a figure that is several times more than those of its five biggest competitors combined. A high TVL often means that more people are using a platform, which should bode well for the value of ETH going forward.
Smart contracts: Ethereum also supports smart contracts, which are self-executing codes with terms written directly into them. This feature allows for a broad range of decentralized applications and has made Ethereum one of the most popular dapp-hosting blockchains.
Continuous development: The Ethereum network is continually being improved, with the recent upgrade to Ethereum 2.0 aiming to enhance scalability and security.
It means Ethereum should be able to keep up with technological progress in the blockchain industry, which should keep the value of ETH at a steady level.
With the above in mind, settling on ETH for a first crypto investment should not be a daunting choice to make.
BNB Coin
BNB Coin, the native cryptocurrency of the Binance ecosystem, is another choice when buying crypto for beginners.
It may not have the same level of reputation and name recognition as the first two coins on our list, but it has managed to quietly establish itself as an important part of the broader crypto market.
Here’s why you should consider BNB among the best cryptocurrency for beginners in 2024:
Stable performance: Stability is key for any investment, and despite the crypto market’s volatility, BNB has shown consistent growth over the years. It was initially priced at .15 during its 2017 ICO and has seen significant appreciation since then. At the time of writing, BNB was priced at more than 5 and had a market cap of .3 billion, making it the third-largest non-stablecoin cryptocurrency in the market.
Controlled supply: With a maximum supply of 200 million and a current circulating supply of around 156 million, the value of BNB should benefit from this capped supply because it will create scarcity, which, over time, could help drive up the coin’s value.
Utility token: BNB offers transaction fee discounts on the Binance Exchange and is used across multiple blockchains within the Binance ecosystem. It facilitates trading on the Binance exchange, allowing users who hold BNB to enjoy discounted trading fees. Additionally, it can be used as collateral for margin trading, allowing users to leverage their positions and potentially enhance their returns.
Beyond trading, BNB serves as the primary currency for Binance’s decentralized exchange, Binance DEX. Users can trade cryptocurrencies in a non-custodial manner, maintaining complete control over their assets.
BNB is also integrated into Binance’s decentralized lending platform, Binance Lending, where users can lend and borrow cryptocurrencies while earning interest. Furthermore, BNB can be used to pay transaction fees on the Binance Smart Chain (BSC), a high-performance blockchain developed by Binance.
All these use cases in an ecosystem as dynamic and expansive as Binance’s should help safeguard BNB’s value in the long term, arguably making it one of the best crypto to buy now for beginners.
Solana (SOL)
Another coin that could potentially be among the best crypto investments for beginners is Solana (SOL). Its price performance over the last year has generally been positive, with the coin’s value increasing by more than 660% in that time, per data from CoinGecko.
Solana one-year price chart | Source: CoinGecko
The Solana blockchain also boasts several features that should ensure SOL’s growing reputation in the crypto market and establish it further as one of the largest coins by capitalization:
Speed and cost efficiency: Solana uses a unique proof-of-history (PoH) mechanism, enabling it to process up to 50,000 transactions per second at a fraction of the cost of Ethereum.
Scalability: Solana’s high throughput and low fees also make it an attractive platform for dapp developers and users alike.
Growing ecosystem: Solana has a thriving ecosystem of dapps, NFT platforms, and Web3 games, further enhancing its appeal. It is currently home to some of the most popular meme coins on the market, including Bonk (BONK) and Dogwifhat (WIF).
Environmental impact: Solana’s PoH and proof-of-stake (PoS) models are less energy-intensive than traditional proof-of-work (PoW) systems used by the likes of Bitcoin.
In the current world, where people are big on environmental protection, cryptocurrencies with reduced ecological footprints may be viewed more favorably, and it would make sense for first-time crypto investors to buy such coins.
Ripple (XRP)
Anyone looking for the best crypto to buy as a beginner should not overlook Ripple (XRP). The coin has been around since 2012 when Ripple created it to facilitate fast and cost-effective cross-border transactions.
It has steadily risen to become one of the most prominent digital assets in the crypto sector, with a current market valuation of billion.
Priced at .5252, XRP is currently the most affordable crypto for beginners on our list. The current price is a whopping 84.6% discount on XRP’s all-time high price of .40 and could serve to nudge prospective investors towards it.
XRP One-year price chart | Source: CoinGecko
Other factors that make XRP one of the best cryptos for beginners include:
Fast transactions: XRP can handle up to 1,500 transactions per second, making it one of the fastest cryptocurrencies available.
Low cost: XRP transactions are also cost-effective and do not require high energy consumption, unlike Bitcoin.
Financial partnerships: Ripple has partnerships with major financial institutions like MoneyGram and American Express, a factor that has boosted its credibility and usage.
Affordability: Trading at a lower price point, XRP is accessible to beginners with limited capital. This allows for potentially higher returns with a lower initial investment.
Final thoughts
When starting your journey into cryptocurrency investment, it’s essential to choose assets that offer stability, utility, and potential for growth.
While not an exhaustive list, Bitcoin, Ethereum, BNB Coin, Solana, and XRP each provide unique advantages that can make them ideal choices for beginners.
However, always remember to do your own research and consider your risk tolerance before investing in any cryptocurrency. Despite their relative stability, the coins mentioned above are also prone to periods of volatility, which could wipe out your investment.
FAQs
What are the best places to buy crypto for beginners?
There are several platforms where beginners can buy cryptocurrencies, such as Coinbase, Binance, and Kraken. These platforms are user-friendly and offer a variety of cryptocurrencies. However, you must remember that investing in crypto carries risk. Always do your own research and consider seeking advice from a financial advisor.
What is the best way to invest in cryptocurrency for beginners?
The best way to invest in cryptocurrency for beginners is often buying and holding a diversified portfolio of cryptocurrencies for the long term, regardless of short-term price fluctuations. However, it’s important to only invest what you can afford to lose and to do thorough research or seek professional advice before investing. Remember, the value of investments can go down as well as up.
