Metaplanet Sells Bitcoin Options to Boost Holdings, More Adoption Ahead?

Metaplanet, a Tokyo-listed company, recently strengthened its Bitcoin position by selling 233 Bitcoin put options to purchase 24 BTC.

The company disclosed plans to purchase more BTC by the year-end. This move aims to expand their Bitcoin portfolio, which currently holds 530 BTC.

Details of Metaplanet Options Deal

According to Metaplanet's X post, it placed $13.8 million as collateral to secure its position in the options market. The company earned a 10.75% nominal yield from this transaction, translating to an impressive annualized return of 45.63%.

The premium generated from these options will allow Metaplanet to purchase even more Bitcoin. The sale aligns with the company's goal of boosting its holdings during market downturns.

According to the X post, Metaplanet will benefit from this strategy in two possible outcomes. If Bitcoin falls below $62,000, the company will be forced to buy additional BTC at that price. However, if the price stays above $62,000 by expiration, Metaplanet will keep the premium and avoid purchasing extra coins.

Metaplanet's Growing Bitcoin Holdings

The Japanese firm continues strengthening its position in the crypto market through multiple strategies. For the past few months, Metaplanet has been bagging more Bitcoin assets.

*Metaplanet purchases additional 107.91 $BTC* pic.twitter.com/pPrRBGrJsC

- Metaplanet Inc. (@Metaplanet_JP) October 1, 2024

On October 1st, 2024, the company bought 107.913 Bitcoin, valued at around 1 billion yen. Its average purchase price is now 9,266,724 yen per Bitcoin.

This acquisition raised the firm's total Bitcoin holdings to 530.717 BTC, valued at approximately $32 million.

In addition, last month, Metaplanet announced that itbought 38.46more Bitcoin tokens at an average price of 7.79 million yen for each coin. In August 2024, Metaplanet secured a 1 billion yen ($6.8 million) loan at a low interest rate (o.1%) to buy more Bitcoin.

*Metaplanet secures 1 billion 0.1% APR loan; proceeds to fund additional purchases of $BTC* pic.twitter.com/seN6YdrnLO

- Metaplanet Inc. (@Metaplanet_JP) August 8, 2024

In June, the firm used money from bond sales to buy $7 million worth of Bitcoin. Earlier this year, it bought Bitcoin worth 500 million yen, strengthening its place in the crypto market.

Metaplanet's aggressive acquisition strategy has drawn comparisons to MicroStrategy, the U.S. company known for its massive Bitcoin holdings.

Purpose of the Transaction

Metaplanet's recent Bitcoin options sale highlights its strategy to benefit from market fluctuations. As mentioned, if Bitcoin prices dip below $62,000 in December 2024, the company will be obligated to buy more.

This transaction is fully cash-secured, meaning Metaplanet has already set aside enough collateral to meet its obligations if the options are exercised.

This purchase coincides with Bitcoin's recent decline from $64,000 to the $60,000 threshold. While market sentiment appears gloomy, crypto analyst Dam Gambardello sees thisdecline as the final price dip before a significant rally.

BITCOIN'S One Indicator Signaling LAST Major Dip

Intro 00:00
Higher low support 00:4
This indicator has my attention 2:25
Bullish support 4:20
If Bitcoin capitulates 6:30
The ultimate capitulation 7:30
October still looks good 9:15
Zoom out on BTC! 10:30 pic.twitter.com/aJBTQ2jCl4

- Dan Gambardello (@cryptorecruitr) October 2, 2024

The analyst highlights a lower trendline in an X post's falling wedge" chart pattern. Gambardello thinks Bitcoin retesting this trendline will probably be the last time since its price has been steady for the past six months.

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