Metaplanet CEO Rebuts Critics Over Bitcoin Strategy and Transparency

Metaplanet, a Tokyo-listed Bitcoin treasury company, revised its 2025 earnings forecast after reporting a large non-cash Bitcoin impairment loss. The company's BTC holdings grew significantly in 2025, increasing from 1,762 BTC to 35,102 BTC. Despite the write-down, Metaplanet raised its 2026 revenue and operating income guidance.

CEO Simon Gerovich denied allegations that the company lacked transparency in its Bitcoin investment strategy. He emphasized that all transactions and wallet addresses are publicly disclosed. Gerovich clarified that the firm's strategy involves using options trading to reduce the effective cost of Bitcoin acquisition.

Metaplanet's revenue surged 738% in 2025, driven by a shift to a Bitcoin-focused financial model. The 'Bitcoin Income Generation' segment now accounts for 95% of total revenue. Despite a $1.35 billion unrealized loss on its Bitcoin treasury, the company's equity ratio remains strong at 90.7%.

Why Did This Happen?

Metaplanet's impairment loss is primarily due to mark-to-market accounting under Japanese GAAP. This loss is non-cash and does not affect cash flows or operations. The company's Bitcoin yield per diluted share increased by 568%, reflecting the growing value of its holdings.

Gerovich explained that the firm's strategy includes selling put options to generate premium income. This approach allows the company to acquire Bitcoin at favorable prices, reducing the effective cost of each acquisition. The strategy contributed to a 500% increase in Bitcoin per share in 2025.

Despite the impairment, Metaplanet's 2026 outlook shows strong revenue and operating income projections. The company forecasts revenue of $103 million and operating income of $73 million for 2026. However, it does not provide guidance for net income due to Bitcoin's price volatility.

Investor sentiment appears mixed. While some acknowledge the company's transparency and growth in Bitcoin holdings, others remain skeptical about the sustainability of its strategy. The company's equity ratio of 90.7% is seen as a positive indicator of financial stability.

What Are Analysts Watching Next?

Analysts are closely watching Metaplanet's ability to maintain its Bitcoin income generation strategy in a volatile market. The company's use of structured options strategies and its focus on long-term Bitcoin accumulation are key areas of interest. Gerovich emphasized that the firm is not engaging in short-term market timing.

The firm's borrowing practices and capital structure are also under scrutiny. Metaplanet has set up a $500 million credit facility and issued perpetual preferred equity (MERCURY). These moves are intended to provide flexibility in managing capital without being tied to short-term share price changes.

Overall, Metaplanet's financial performance and strategic direction will be critical in determining its long-term success. The company's commitment to transparency and its ability to adapt to market conditions will shape investor perceptions and market confidence.