Metaplanet Adjusts Bitcoin Put Options, Raising Strike Price to $66,000 as Optimism Grows
2024-10-16

Metaplanet, a publicly traded company on the Tokyo Stock Exchange (TSE: 3350) has adjusted its previously disclosed Bitcoin put options strategy, moving the strike price from $62,000 to $66,000 as the company remains optimistic about the cryptocurrency’s future price movements.
The move, known as an options roll-up, is a strategy in which investors close an existing options position and open a new position for the same option, often at a later date with a higher strike price. In this case, the strike price was raised to $66,000.
An option is a derivative that gives its holder the option but not the obligation to buy or sell an asset at a predetermined price at a specific date. That predetermined price is called the strike price.
Through this strategy, Metaplanet aims to enhance the potential returns of its options strategy, while maintaining its maturity date of December 27, as The Block reported. In a post on the microblogging platform X (formerly known as Twitter), MetaPlanet CEO Simon Gerovich wrote that the move boosts the nominal yield on optional sales, and generated a premium of 57.9 million yen ($380,000), bringing the total premium earnings to 272.5 million yen ($1.8 million).
We’ve completed a roll-up of our Bitcoin put options, adjusting the strike price from $62K to $66K with a Dec 27, 2024, maturity. This boosts our nominal yield on option sales, and generated an additional JPY 57.9M in premium, bringing total premium earnings to JPY 272.5M, to be… pic.twitter.com/iIfmhJa6ul
The firm’s transaction involved repurchasing 223 BTC put options with a $62,000 strike price, and selling the same number of put options at a $66,000 strike price. The firm’s nominal yield, as a result, rose by 2.65% to 13.4%.
The move comes as Bitcoin’s price rose nearly 10% over the past week to now trade above the $68,000 mark, shortly seeing a low under $60,000 earlier this month. The cryptocurrency’s market capitalization has, as a result climbed to $1.35 trillion.
Metaplanet Inc., headquartered in Tokyo, Japan, is a multifaceted company that engages in diverse industries, primarily focusing on technology and finance
The company is publicly traded on the Tokyo Stock Exchange under the code 3350 and is known for its forward-thinking strategies and investments, including ventures into emerging financial technologies like cryptocurrencies. Data shows it has already accumulated 855.5 BTC worth around $58.2 million.
Its new put option’s strike price would mean that if the price of Bitcoin drops below the $66,000 mark, it would be obligated to buy BTC at that price. It received a premium of 5.9095 BTC through the options strategy.
Featured image via Unsplash.