- Metaplanet’s Bitcoin acquisition strategy boosts holdings with cost-effective options.
- Selling cash-secured puts lowers Metaplanet’s Bitcoin acquisition costs significantly.
- Strategic options program generates revenue, enhancing capital efficiency in Bitcoin.
Metaplanet Inc., a Japanese public company, has made a significant move in the crypto space by acquiring 696 Bitcoin for a total of ¥10.15 billion. This acquisition is part of the company’s ongoing Bitcoin Treasury Operations, aimed at bolstering its holdings while optimizing its capital efficiency. The move highlights Metaplanet’s commitment to a strategic, cost-effective approach in the world of cryptocurrency investments.
Strategic Use of Put Options
Metaplanet’s latest Bitcoin acquisition was executed using cash-secured put options. These options were previously sold by the company, generating a combination of premium income and the ability to purchase Bitcoin at below-market effective prices.
The company’s approach exemplifies the strategic value of using options to enhance capital efficiency. Instead of purchasing Bitcoin outright on the spot market, Metaplanet opted to sell puts and collect premiums. This method allowed the company to acquire more Bitcoin than would have been feasible through direct purchases alone.
This move is in line with the company’s Bitcoin Income Generation strategy, a business line designed to maximize the efficiency of Bitcoin holdings and minimize acquisition costs. The strategy aims to take advantage of market fluctuations while securing Bitcoin at more favorable prices, all while generating additional revenue from the premiums received through the sale of the options.
Financial Overview of the Transaction
The 696 Bitcoin acquired through the strategy were purchased at an average price of 14,586,230 yen each. This brought the total investment to 10.152 billion yen.
However, when considering the premiums collected from the sale of the options, the effective acquisition cost dropped to 13,479,404 yen per Bitcoin significantly lower than the market price at the time. This strategic move effectively lowered Metaplanet’s overall Bitcoin purchase costs while increasing its holdings.
As of this transaction, Metaplanet now owns 4,046 Bitcoin with an average purchase price of 12,943,181 yen per Bitcoin, amounting to a total investment of 52.368 billion yen. The company’s calculated and efficient use of options has allowed it to accumulate Bitcoin at prices well below market rates.
Profitable Strategy for the Future
In the first quarter of FY2025, Metaplanet continued its option-selling program, generating 770,351,229 yen in operating revenue. The sale of cash-secured puts has proven to be a lucrative tactic, equating to 50.26 BTC in premiums.
With Bitcoin prices higher at the beginning of the quarter, the options were either exercised or expired by maturity, allowing the company to acquire 645.74 BTC through these strategic moves.
