Metaplanet Faces Scrutiny Amid Major Losses and Strategy Questions

Japanese firm Metaplanet reports a 95B yen loss, defends its Bitcoin strategy and transparency against investor criticism as it forecasts a 2026 profit rebound.

Metaplanet, the Japanese firm known for its significant Bitcoin holdings, is navigating a challenging period marked by substantial financial losses and public disputes over its strategic transparency. The company's leadership, particularly CEO Simon Gerovich, is actively countering allegations that it misled shareholders regarding its cryptocurrency approach and associated risks.

Financial Results and Strategic Stance

The company's fiscal year 2025 concluded with a net loss of 95 billion yen. Management emphasizes that this significant shortfall is largely attributable to non-cash accounting impairments on its Bitcoin treasury, a direct result of cryptocurrency market volatility, rather than fundamental operational missteps.

Despite these sizable paper losses, Metaplanet remains committed to its long-term digital asset accumulation strategy. The firm has issued an optimistic forecast for the upcoming fiscal year 2026, projecting revenue of 16 billion yen and an operating profit of 11.4 billion yen. The realization of this projected turnaround is widely seen as heavily dependent on the future performance of the broader crypto market.

Transparency and Tactics Under the Microscope

A central point of contention involves the company's reserve of 35,102 Bitcoin. Some market observers have accused the management of delaying disclosures concerning major Bitcoin purchases and related options trading activities—information considered material for investors. Metaplanet's leadership firmly rejects these claims, stating all acquisitions were reported immediately upon completion. To bolster its case for transparency, the company points to its publicly listed wallet addresses and a real-time dashboard designed to allow continuous monitoring of its holdings by the investment community.

Gerovich has also addressed criticism of the firm's derivatives activity. He clarified that the sale of put options is not a tool for short-term speculation but is intended to lower the average acquisition cost of Bitcoin and generate premium income. Regarding financing, the company acknowledged disclosing credit amounts and collateral but stated the lender's identity remains confidential at the express request of the financing partner.

The convergence of these disputes with a period of strained financial performance has placed Metaplanet under considerable pressure from investors and analysts alike.