Metaplanet's Billion-Dollar Bitcoin Bet Faces Intense Scrutiny

Japanese firm Metaplanet faces $1.2B in unrealized Bitcoin losses as its stock plunges 85%. CEO defends aggressive crypto treasury strategy amid operational profit surge.

Metaplanet, the Japanese company that made headlines for its aggressive cryptocurrency strategy, is confronting severe financial headwinds. The firm reported staggering unrealized losses exceeding $1.2 billion, with its share price trading far below previous peaks. This situation has placed CEO Simon Gerovich under fire, raising a pivotal question: has the company's bold Bitcoin treasury plan fundamentally failed, or is this merely a painful snapshot within a notoriously volatile asset class?

Share Price Collapse Mirrors Crypto Downturn

The equity value of Metaplanet has experienced a dramatic decline, closely tracking the broader correction in digital asset markets. After reaching an all-time high of ¥1,930 in June 2025, the stock plummeted to ¥319 by February 20—a devastating drop of approximately 85%. This mirrors the performance of Bitcoin itself, which was trading nearly 50% below its October 2025 record high during the same period.

A significant pressure point is the company's high average acquisition cost for its Bitcoin holdings. Metaplanet currently possesses 35,102 BTC, purchased at an average price of around $107,000 per coin. With Bitcoin's price fluctuating between $67,000 and $68,000 in the preceding week, shareholders are facing substantial paper losses. Despite this, management reaffirmed its commitment to the "555 Million Plan," which aims to expand corporate reserves to 100,000 BTC by the end of 2026. To fund additional purchases and reduce debt, Metaplanet is preparing a capital increase of up to ¥21 billion.

Operational Profit Contrasts with Net Loss

The financial results for 2025, released on February 16, reveal a stark contrast between operational performance and accounting outcomes. The company posted a net loss of ¥95 billion (approximately $605 million). CEO Gerovich attributes this result primarily to mark-to-market valuation of its Bitcoin reserves, arguing that net profit is an inadequate metric for evaluating a Bitcoin-focused treasury business.

Operationally, the picture is strikingly different. The firm's operating profit surged by 1,694% year-over-year to ¥6.2 billion. A portion of this revenue was generated through the sale of put options. Gerovich has defended this tactic against critics, describing it as a method to earn premium income and potentially acquire Bitcoin below market prices, rather than a speculative play on short-term price movements.

Leadership Defends Strategy and Transparency

Facing escalating criticism, Simon Gerovich issued a public response on February 20 via the social media platform X (formerly Twitter). He directly addressed anonymous allegations concerning the misuse of shareholder funds or the concealment of material information. Gerovich stated he does not shy away from accountability for his public statements or the company's actions.

As evidence of corporate integrity, he pointed to the real-time disclosure of the company's Bitcoin wallets and the shareholder dashboard. These tools, according to Gerovich, position Metaplanet as one of the world's most transparent publicly-listed companies. The ongoing debate centers on whether this level of transparency is sufficient to offset the financial turbulence created by its core strategy.