Metaplanet Boosts Bitcoin Holdings by 696 BTC, Shares Rise 2%

Metaplanet, a Japanese hotel company, has significantly increased its Bitcoin holdings by purchasing an additional 696 BTC, valued at approximately $58.5 million. This acquisition brings the company's total Bitcoin stash to 4,046 BTC. The purchase was made at an average price of nearly 14.6 million yen ($97,500) per Bitcoin, resulting in a total expenditure of 10.15 billion yen.

The company's total Bitcoin holdings were acquired at an average price of around $86,500.57 per coin. Metaplanet financed these purchases in the first quarter through the sale of cash-secured BTC put options. These options are futures contracts that bet on the price of the underlying asset going down. The options were written at the beginning of the quarter when BTC was scaling all-time highs above $100,000. Metaplanet reported earning 770.3 million yen in revenue using this method.

According to Metaplanet, this strategy allowed the company to acquire more Bitcoin per yen deployed, benefiting from premium income and a reduced effective cost basis. The company's latest Bitcoin purchase positions it as the ninth largest public holder of Bitcoin, based on data tracked by Bitcoin Treasuries.

Metaplanet's Tokyo-listed shares closed 2% higher at 409 yen on Tuesday, outperforming the Nikkei 225, which remained unchanged on the day. This move underscores the company's strategic investment in Bitcoin, leveraging financial instruments to maximize its holdings while managing risk effectively. The company's approach highlights a growing trend among corporations to diversify their asset portfolios with cryptocurrencies, particularly Bitcoin, as a hedge against inflation and market volatility.