Japanese investment firm Metaplanet has restructured its Bitcoin put options, raising the strike price from $62,000 to $66,000 as part of a strategy to boost returns and capitalize on the bullish outlook for Bitcoin.
Japan's Metaplanet Adjusts Bitcoin Sell Options to Boost Revenue
The adjustment date was announced as Oct. 18, and the Tokyo-listed company announced its decision to maintain the same maturity date of Dec. 27.
CEO Simon Gerovich announced that the move brought in an additional bonus of JPY57.9 million ($388,000), bringing total bonus earnings for the year to JPY272.5 million ($1.8 million).
Collecting is a strategy in which an investor seeks to achieve greater returns by closing existing options and opening new ones with a higher strike price.
Company:
- He bought back 223 bitcoin put options with a strike price of $62,000.
- Simultaneously, it sold 223 new options with a strike price of $66,000.
The firm retained $13.8 million in collateral from a previous equity acquisition exercise. As part of the roundup, Metaplanet earned a total premium of 5.9 BTC.
“This adjustment increased the nominal return on the options by 2.65%, bringing the total return to 13.4%,” Metaplanet said in a statement. “The new strategy aligns with the company’s goal of accumulating Bitcoin assets and increasing profitability, while providing greater income potential.”
Latest Bitcoin Investments
Metaplanet has been actively increasing its bitcoin reserves in recent months. On October 17, it purchased 106,976 BTC (worth around $6.7 million), bringing its total holdings to 855,478 BTC, worth around $57.4 million.
*This is not investment advice.