Metaplanet has been on a Bitcoin ($BTC) buying spree in recent months. The Japanese investment firm has once again made a significant move to increase its Bitcoin holdings, adding millions of dollars’ worth of the cryptocurrency to its balance sheet.
The company purchased 108.786 Bitcoins, spending 1 billion yen (approximately $6.74 million), as disclosed on 7 October. The average price paid for each Bitcoin was ¥9.19 million ($61,943).
This latest purchase adds to another buy on 1 October, where Metaplanet acquired $6.9 million worth of Bitcoin.
Led by CEO Simon Gerovich, the company has adopted strategies to strengthen its position in the cryptocurrency market.
These purchases bring Metaplanet’s total Bitcoin holdings to 639.503 $BTC. In total, the company has spent 5.965 billion yen (around $40.32 million) on its Bitcoin portfolio, at an average price of ¥9.33 million ($62,906) per $BTC.
Gerovich has explained that these purchases are part of Metaplanet’s long-term strategy to boost its Bitcoin reserves while managing financial risk.
He added, “We aim to increase our Bitcoin reserves without adding financial risk”, making it clear that the company believes in the potential of Bitcoin and plans to hold it as a key asset.
The impact of these Bitcoin purchases has also been felt in the stock market. After the latest announcement of new Bitcoin acquisitions, Metaplanet’s share price jumped more than 11% on 7 October, hitting an intraday high of ¥1,047 (around $7).
Since the company began heavily investing in Bitcoin in May 2024, its stock has more than tripled, gaining over 532% this year alone.
Using Bitcoin options to boost holdings
In addition to buying Bitcoin directly, Metaplanet has been using a more complex financial tool known as Bitcoin options to further grow its Bitcoin holdings.
On 3 October, the company sold 223 Bitcoin put options, which are contracts that give the buyer the right to sell Bitcoin at a specific price by a certain date. These contracts have a strike price of $62,000 and will expire in December 2024.
By selling these options, Metaplanet earned an additional 23.97 $BTC, worth around $1.46 million at the time. This move allowed the company to generate income from Bitcoin’s price volatility without taking on too much risk.
In a notice, the company explained, “This transaction allows us to capitalise on Bitcoin’s volatility by generating premium income while maintaining a fully cash-secured position”.
The use of options means that if Bitcoin’s price falls below $62,000 when the contracts expire, Metaplanet will be required to buy more Bitcoin at that lower price, which is a key part of its strategy to accumulate more of the cryptocurrency.
Gerovich highlighted that this options strategy helps generate extra income from its Bitcoin assets, saying, “We aim to generate yields through options strategies on a portion of our assets”.
Strategic partnership with SBI Holdings
To further enhance its cryptocurrency operations, Metaplanet has also partnered with SBI Holdings, one of Japan’s largest financial groups.
This partnership was announced in early September and is aimed at improving Metaplanet’s ability to trade, store, and manage its cryptocurrency assets.
SBI Holdings brings extensive experience and resources to the collaboration, which will help Metaplanet secure its growing Bitcoin portfolio.
This partnership is part of Metaplanet’s broader plan to expand its presence in the cryptocurrency market, and the expertise provided by SBI is expected to play a crucial role in this process.
Despite other Japanese companies like Remixpoint diversifying into other cryptocurrencies (known as altcoins), Metaplanet remains firmly committed to Bitcoin.
Gerovich has made it clear that the firm will not be venturing into altcoins anytime soon, focusing solely on Bitcoin for the foreseeable future.
Metaplanet’s aggressive Bitcoin strategy has proven to be a success, with the company steadily increasing its holdings and seeing significant gains in its stock price.
By combining direct Bitcoin purchases with a sophisticated options strategy and partnering with a major financial player like SBI Holdings, Metaplanet is positioning itself for long-term growth in the cryptocurrency market.
