Metaplanet, a Japanese investment firm, has reported generating 23.9 Bitcoin (approximately $1.4 million) in premium income from selling 223 Bitcoin put options to QCP Capital, a Singapore-based digital asset trading firm. The company earned 0.1075 Bitcoin per contract, according to an official statement released on Thursday.
Metaplanet’s strategy allows the company to capitalize on Bitcoin’s volatility, earning premium income while maintaining a fully cash-backed position. By selling these 223 Bitcoin put options, Metaplanet positions itself to increase its Bitcoin holdings if the market price drops below the $62,000 strike price at maturity.
“This strategy not only enhances the company’s Bitcoin reserves but also strengthens its balance sheet, aligning with our ongoing financial strategy to boost long-term Bitcoin exposure and improve profitability,” the firm stated.
How Metaplanet Benefits from Bitcoin Put Options
A put option gives the buyer the right—but not the obligation—to sell a specific amount of Bitcoin at a predetermined strike price before or on a set expiration date. If Bitcoin’s price falls below the strike price by expiration, the buyer is likely to exercise this right, requiring the seller (Metaplanet) to purchase the Bitcoin at the agreed price.
This week, Metaplanet announced the acquisition of an additional 107.9 Bitcoin, valued at 1 billion yen (approximately $7 million). In total, Metaplanet now holds 530.7 Bitcoin, worth around 4.96 billion yen ($34 million).
Website: CentBit.Online – Crypto & Blockchain Expert Bangladesh.
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