At Terramatris, our investment philosophy is built around a single, disciplined objective: increasing long-term spot cryptocurrency holdings through the systematic generation and reinvestment of options premium. The strategy is deliberately conservative in direction, structured in process, and focused on compounding rather than speculation.
Our approach begins with the continuous sale of cash-secured put options on highly liquid crypto assets. This mechanism serves a dual purpose: it provides an immediate stream of premium income and establishes a rules-based method for entering long exposure at prices that are typically more favorable than prevailing market levels. When these options expire without assignment, the collected premium is not treated as disposable income. Instead, it is directed back into the acquisition of spot crypto, increasing the size of our long-term holdings. Over time, this cycle forms the core engine of organic portfolio expansion.
When a put option is assigned, we do not always take delivery of the underlying asset directly into spot. In many cases, assignment is instead expressed through a long perpetual futures position. This structure maintains full exposure while allowing more flexible capital management, efficient margin use, and smoother integration with our premium-generating overlay. Once the perpetual structure is in place, we begin selling covered calls against the position, continuing the cycle of harvesting premium even immediately after assignment. The perpetual future is gradually unwound and replaced with spot holdings, a process funded largely by the premiums generated from the call-writing activity. This method allows us to transition the exposure from leveraged form into spot over time, typically at an effective discount relative to the original assignment price.
Central to the strategy is the disciplined recycling of all premium flows into spot crypto. Whether derived from cash-secured puts, covered calls, or incremental adjustments around assignment events, each unit of premium is treated as a capital contribution toward long-term asset accumulation. This reinvestment principle ensures that compounding operates continuously within the portfolio. As the spot base expands, it increases the collateral available for future option sales, which in turn naturally scales the premium-generation capacity of the strategy.
Leverage plays a role, but only in a controlled and purpose-specific manner. It is employed primarily to maintain exposure during the transition from perpetual futures to spot and to ensure that sufficient collateral is available to continue writing options without disruption. Importantly, leverage is never used to pursue speculative directional gains; it is a structural tool that supports operational continuity and efficient capital rotation.
The strategy operates as a self-reinforcing cycle. Premium generation leads to additional spot accumulation, which expands collateral capacity, which in turn enables broader option-selling activity, further increasing premium generation. Over time, the compounding effect of this closed loop becomes the dominant driver of portfolio growth. The emphasis is always on measured, incremental expansion of spot holdings rather than high-volatility directional bets.
Terramatris is therefore positioned as a systematic, premium-driven asset accumulator. By combining disciplined option selling, structured assignment management, selective use of perpetual futures, and continuous reinvestment, the fund seeks to grow its spot crypto base methodically and sustainably. This long-term orientation, supported by an institutional process and a consistent rules-based framework, defines the core identity of our investment strategy.