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Cryptocurrency News Articles
Metaplanet’s $6.92M Bitcoin Buy Sends Stock Soaring
Oct 07, 2024 at 03:00 pm
With its latest acquisition, the Japanese investment firm Metaplanet has increased its Bitcoin holdings to about 640 Bitcoin and sent its stock price soaring by more than 10%.
Japanese investment firm Metaplanet (TYO:9218) has increased its Bitcoin (CRYPTO: BTC) holdings to around 640 BTC, following its latest acquisition of 108.78 BTC.
The company's stock price also surged by over 10% on October 7th.
Metaplanet's Latest Bitcoin Purchase
The latest acquisition by Metaplanet was valued at about $6.92 million at the time of purchase, based on the BTC price of around $63,600.
The company made the announcement on October 7th, bringing its total BTC holdings to 639.5 BTC, according to Cointelegraph.
With this latest purchase, Metaplanet's Bitcoin holdings increased to around $40.5 million, considering the current BTC price.
Metaplanet's Stock Price Soars
According to data from Google Finance, Metaplanet's share price rose by nearly 11% during trade on October 7th, reaching an intraday high of 1,047 Japanese yen, or about $7.
The company's stock price has seen significant growth this year, driven largely by its Bitcoin acquisitions.
Metaplanet began using Bitcoin as a reserve asset for its strategic treasury in May of 2024. Since then, the company's stock price has surged by over 532% and has now tripled from its price at the start of the year.
Put Options Boost Bitcoin Holdings
In addition to the direct purchases, Metaplanet also made an extra 23.97 BTC, or about $1.46 million, last week through a scheme that involved the sale of put options.
The 223 Bitcoin put options contracts that Metaplanet sold have a strike price of $62,000 and will mature on December 27, 2024.
SBI Partnership to Enhance Crypto Management
Cryptocurrency put options grant the buyer the right, but not the duty, to sell Bitcoin at a certain price (the strike price) on or before a certain date.
As explained by Metaplanet CEO Simon Gerovich at the time, this approach allows the company to grow its Bitcoin holdings without taking on additional financial risk.
"We plan to use options methodologies on some of our assets to generate returns," Gerovich said.
The agreement between Metaplanet and Gerovich's crypto branch of SBI Holdings was announced in early September. It aims to enhance the management, storage, and trading of cryptocurrency.
Among Japan's most prominent integrated financial groups is Strategic Business Innovator Group, or SBI Holdings.
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