Metaplanet's Cash-Secured Options Strategy Pays Off as Bitcoin Price Surges
Bitcoin's price has surged to over $80,000 in recent times, but not all companies have been holding onto their Bitcoin. Strategy, the world's largest corporate Bitcoin holder, has sold $430 million worth of Bitcoin this year to fund preferred stock dividends and redemptions.
However, Metaplanet of Japan took a different approach, buying roughly 7,900 additional Bitcoin worth $623 million over the same period. The company was previously a small Tokyo hotel operator but pivoted to a treasury model by purchasing Bitcoin in April 2024.
Metaplanet's strategy involves using cash-secured options to lower its cost basis. It sells cash-secured put options with strike prices below the current market price, collecting premiums that effectively lower its cost basis if the options expire worthless or are exercised.