Key Points
- Metaplanet, a Japanese financial services company, has made its third major Bitcoin purchase for the month.
- The company has implemented a unique investment strategy by utilizing put options in its Bitcoin dealings.
Metaplanet, a publicly traded financial services company in Japan, has made its third significant acquisition of Bitcoin (BTC) for the month.
The company increased its Bitcoin holdings by 108.999 BTC, bringing its total reserves to approximately 748.502 BTC.
Metaplanet’s Bitcoin Acquisition
On October 11, Metaplanet disclosed that it invested approximately ¥1 billion (around $6.5 million) in its latest purchase.
The acquisition was made at an average price of ¥9,174,396 per BTC, which is equivalent to about $60,000 per Bitcoin based on current market rates.
The month started with Metaplanet acquiring 107.913 BTC, valued approximately at ¥1 billion ($6.9 million), on October 1.
Since then, the company has continued its Bitcoin buying spree, adding another batch of the crypto asset last week.
In total, the firm has acquired more than 300 Bitcoin this month alone.
This consistent accumulation is part of the company’s broader strategy to strengthen its BTC reserves as a crucial asset in its treasury.
Metaplanet’s recent activity aligns with the wider trend of corporations diversifying their reserves by acquiring BTC.
These companies are drawn to Bitcoin’s potential as a hedge against inflation and economic instability.
Other Asian firms such as Nexon and Meitu have also adopted the crypto asset.
Unique Investment Strategy
Unlike other companies, Metaplanet has implemented a unique investment approach by using put options in its Bitcoin strategy.
Put options are a type of financial derivative that gives the buyer the right, but not the obligation, to sell an asset at a predetermined price (known as the strike price) within a specific period.
On October 3, the Japanese firm disclosed that it had sold 223 Bitcoin put option contracts, each with a strike price of $62,000, set to expire on December 27.
This transaction allowed Metaplanet to secure an additional 23.97 BTC, valued at around $1.46 million at the time, enhancing its overall Bitcoin holdings.
Metaplanet CEO Simon Gerovich explained that this strategy helps the company expand its Bitcoin reserves without increasing financial risk.
He stated that the firm’s goal is to use options strategies on a portion of its assets to generate returns.
Metaplanet began its Bitcoin journey in May 2024 when it announced that it had adopted Bitcoin as its treasury reserve, following the example of MicroStrategy, an American-based business intelligence firm.
The move earned the company the title of “Asia’s MicroStrategy” as Metaplanet is the first in the region to adopt Bitcoin as a hedge against the falling Japanese yen.
Since then, the company’s stock listed on the Tokyo exchange has turned around, gaining approximately 500% year to date, according to Google Finance data.
The stock gained around 5% within the past 24 hours.
