Successful options writing strategy
Japanese digital asset company Metaplanet is forecasting an 81% surge in operating profit by 2026. This comes after a 17-fold jump in the metric last year. This impressive result was made possible by the company's successful options writing strategy.
However, it was not without losses - the company recorded a significant loss of 102.2 billion yen ($650 million) from the revaluation of its bitcoin assets due to the decline in the price of the first cryptocurrency.
High options income offset losses
Despite these losses, Metaplanet's operating profit grew 17-fold in 2022 thanks to high income from cryptocurrency options trading. Effective management of option strategies allowed the company to more than offset losses from bitcoin price fluctuations.
This trend is expected to continue in the coming years. By 2026, Metaplanet's operating profit could grow another 81% from the record 2022 level.
Experts positive on Metaplanet's prospects
Analysts are positive on Metaplanet's prospects. The company has demonstrated an ability to effectively monetize volatility in the cryptocurrency market, which is particularly important in the context of an overall decline in digital asset prices. Its successful options management strategy can serve as an example for other market participants seeking to benefit from cryptocurrency price dynamics.