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.

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.