Metaplanet's Bitcoin Strategy Faces Scrutiny Amid Market Volatility

Metaplanet CEO rebuts critics as Bitcoin losses overshadow 738% revenue surge. The firm holds 35,102 BTC, making it Japan's largest corporate holder.

The Japanese firm Metaplanet finds itself defending its corporate Bitcoin acquisition strategy as its shares trade significantly below recent highs. CEO Simon Gerovich has issued a detailed public rebuttal to anonymous criticism circulating on social media, addressing concerns over transparency and risk management. This defense comes as the company's reported unrealized losses on its Bitcoin holdings exceed $1.2 billion.

Financial Performance Highlights a Strategic Dichotomy

Metaplanet's fiscal 2025 results underscore the complex outcomes of its treasury model. The company reported a staggering 738% surge in revenue to 8.9 billion yen (approximately $58 million), with its "Bitcoin-Income" segment contributing an estimated 95% of this total. Operational profit saw an even more dramatic increase of 1,694%, reaching 6.28 billion yen (about $41 million).

However, these strong operational figures were overshadowed by a substantial non-cash impairment charge. A 102.2 billion yen (roughly $667 million) valuation loss on its Bitcoin reserves pushed the company into a net loss of 95 billion yen (around $620 million) for the year. This marks a sharp reversal from the 4.44 billion yen net profit recorded in 2024. Gerovich argues that net profit is an inadequate metric for evaluating a Bitcoin treasury company, pointing instead to operational performance and the over 500% growth in "Bitcoin per share."

CEO Addresses Specific Allegations Head-On

Critics had leveled several accusations at the company, including delayed disclosure of major Bitcoin purchases, obscured derivative losses, and insufficient transparency regarding loan terms secured against Bitcoin collateral.

Gerovich countered each point. He stated that all four Bitcoin purchases made in September 2025—totaling more than 11,800 BTC across four separate transactions—were disclosed at the time of execution. As evidence of transparency, he cited publicly accessible wallet addresses and a live dashboard for shareholders. Regarding market timing, the CEO acknowledged that September 2025 represented a "local high" for Bitcoin but emphasized that Metaplanet's approach is one of systematic accumulation, not tactical trading.

The company's use of put options also drew scrutiny. Gerovich described this tactic as selling puts to generate premium income, thereby effectively lowering the acquisition cost of Bitcoin.

Expanding Holdings Amid a Valuation Gap

Metaplanet's Bitcoin position has grown exponentially, from 1,762 BTC at the end of 2024 to a current holding of 35,102 BTC. This makes it the largest corporate holder in Japan and the fourth-largest publicly traded corporate holder globally.

The firm's average purchase price is approximately $107,000 per Bitcoin. With Bitcoin's price recently trading around $67,000 and dipping toward $65,000, this creates a significant valuation gap. Reports estimate this translates to roughly $1.35 billion in unrealized losses.

The company also carries about $280 million in outstanding debt. Metaplanet has asserted that its liabilities and preferred shares remain fully covered even with an 86% decline in Bitcoin's price, supported by an equity ratio of 90.7%. In a recent development, Cantor Fitzgerald reduced its price target for Metaplanet from $6.00 to $3.00 on February 18.

Future Plans and Shareholder Base

Looking ahead, Metaplanet has provided guidance for fiscal 2026, forecasting revenue of 16 billion yen (approximately $104 million), a 79.7% year-over-year increase. It expects operational profit to reach 11.4 billion yen (about $74 million). Furthermore, its ambitious "555 Million Plan" outlines goals to expand its Bitcoin holdings to 100,000 BTC by the end of 2026 and to 210,000 BTC by 2027.

Despite a share price that closed at 319 yen on February 20—down more than 21% since the start of the year—the company's shareholder base has expanded remarkably. Reports indicate the number of shareholders grew from 47,200 at the end of 2024 to approximately 216,500, even as the stock price declined.