Metaplanet generates income using Bitcoin options like cash-secured puts and covered calls. I explain how this strategy works and how it helps accumulate BTC.
When I first started analyzing Metaplanet, I thought its strategy was straightforward.
Raise capital, buy Bitcoin, repeat.
But the more I dug into their results, the more I realized there’s another engine quietly driving their growth which is the Bitcoin Income Generation business.
Why This Business Caught My Attention
What stood out to me wasn’t just that Metaplanet holds Bitcoin.
It’s that they actively generate income from Bitcoin volatility.
In my analysis, this is one of the most underappreciated parts of their strategy.
The Latest Results
Based on their recent disclosures:
The Bitcoin Income Generation business generated JPY 2.969 billion (~$20M+) in Q1 2026 revenue
Trailing twelve-month revenue reached ~JPY 10.8 billion
A large portion of total future revenue is expected to come from this segment
Bitcoin Income Generation Business by Quarter
Quarter | Revenue (JPY millions) | Trailing Twelve Months |
|---|---|---|
Q2 FY2025 | 1,130.6 | - |
Q3 FY2025 | 2,438.0 | 5,030.5 |
Q4 FY2025 | 4,241.8 | 8,580.7 |
Q1 FY2026 | 2,969.3 | 10,779.7 |
What This Tells Me
This is not a side activity.
It’s becoming a core operating business line.
And more importantly, it directly supports Bitcoin accumulation.
The Two-Bucket System (Key to Understanding This)
One concept that helped me understand this business is how Metaplanet separates its Bitcoin.
They Split It Into Two Buckets
1. Long-Term Holdings
Never touched
No derivatives
Pure Bitcoin reserve
2. Income Generation Portfolio
Actively traded
Used for options strategies
Generates cash flow
👉 This separation is critical
Because it ensures:
Long-term Bitcoin is protected
Income strategies don’t introduce unnecessary risk
What Does the Income Business Actually Do?
At its core, this business uses options strategies to generate income.
The two main strategies are:
Cash-secured put options
Covered call options
If those sound complicated, don't worry, I’ll break them down in a beginner friendly way.
Understanding Cash-Secured Put Options
This is the first half of the engine.
What Is a Cash-Secured Put?
In simple terms:
You agree to buy Bitcoin at a lower price, and get paid for making that promise.
High School-Level Example
Let’s say Bitcoin is at $70,000.
You tell someone:
“I’m willing to buy Bitcoin at $65,000”
They pay you a fee (premium) for that agreement
Two Outcomes
1. Bitcoin stays above $65,000
You don’t buy anything
You keep the premium (profit)
2. Bitcoin drops below $65,000
You buy Bitcoin at $65,000
Which is cheaper than before
Why Metaplanet Uses This
In my view, this is a very smart approach.
They are:
Getting paid to wait
Buying Bitcoin at a discount
Generating income regardless of outcome
👉 This is how they accumulate Bitcoin more efficiently
Understanding Covered Call Options
This is the second half of the system.
What Is a Covered Call?
In simple terms:
You own Bitcoin and get paid to potentially sell it at a higher price.
Example
Let’s say:
You own Bitcoin at $65,000
You agree to sell it at $75,000
Someone pays you a premium
Two Outcomes
1. Bitcoin stays below $75,000
You keep your Bitcoin
You keep the premium
2. Bitcoin goes above $75,000
You sell at $75,000
You still keep the premium
Why This Works
This allows Metaplanet to:
Generate income from existing Bitcoin
Monetize volatility
Maintain a structured trading cycle
The Full Strategy Loop
Once I understood both strategies, the full picture became clear.
How the System Works Together
Start with cash
Sell cash-secured puts
If assigned → acquire Bitcoin
Sell covered calls on that Bitcoin
If assigned → convert back to cash
Repeat
👉 This creates a continuous income loop
Note that I have not seen any Bitcoin be called away from the covered calls at this point. Based on my analysis, management will sell covered calls at a much higher strike price with a low possibility of being called. This strategy would generate lesser returns but in turn have lower risk on Bitcoin being called away.
What Happens at the End?
At the end of the cycle:
Profits are realized
Bitcoin is accumulated
BTC is transferred to long-term holdings
According to reports:
Metaplanet generated $18.6M in options income in one quarter alone
This effectively reduced their net Bitcoin purchase cost
My Key Insight
In my analysis, this is the most important part:
They are not just buying Bitcoin
They are lowering their cost basis using income strategies
Why This Matters for Bitcoin Treasury Strategy
This changes how I think about their model.
Traditional Approach
Raise capital
Buy Bitcoin
Metaplanet Approach
Raise capital
Generate income
Buy Bitcoin more efficiently
👉 This is a more capital-efficient system
How This Impacts BTC Per Share
This is where I always bring it back to fundamentals.
The Key Question I Ask
Does this increase BTC per Share ?
If Done Correctly
Income offsets purchase cost
More Bitcoin is accumulated
Shareholder value increases
If Done Poorly
Missed upside
Overtrading
Inefficient execution
👉 Execution is everything
Risks of This Strategy
This is not risk-free, and I think it’s important to be clear.
Key Risks I Watch
Bitcoin price moving too quickly (missed upside)
Poor strike price selection
Over-reliance on income generation
Market volatility changing
But overall, in my view, the structure is quite disciplined.
Why This Model Is So Interesting
What makes this fascinating to me is that:
👉 They are turning volatility into an asset
Instead of fearing price swings, they are:
Monetizing them to create an income stream
Using them to accumulate more Bitcoin
My Perspective
Most companies treat volatility as risk.
Metaplanet treats it as revenue.
That’s a very different mindset.
Final Thoughts
When I first looked at Metaplanet, I saw a Bitcoin accumulation story.
Now, I see something more sophisticated.
A company using financial instruments to systematically grow its Bitcoin position.
In my view, this is one of the clearest examples of:
Capital markets + Bitcoin strategy working together
Thank you for reading this insight and I hope you found it helpful.
Check the latest prices of Metaplanet quoted on different exchanges at the link below
Disclaimer:
This article reflects my personal research and opinions and is for informational purposes only. It is not financial advice. I may be wrong, and markets are inherently risky. Always do your own due diligence and consult a licensed financial advisor before making any investment decisions.
