Tokyo-based Metaplanet is a public company that stands out with its aggressive strategy in institutional Bitcoin investments. Recently, some criticism has been put forward on social media platforms regarding the company’s transparency in Bitcoin buying and selling processes and reporting. These allegations accused the company’s management of not adequately informing investors on social media.
Social Media Criticisms and Company Response
In an anonymous post, it was claimed that Metaplanet was slow to disclose Bitcoin purchases, causing losses to investors and hiding financial details. The posts reflected the view that the company was hiding losses by purchasing Bitcoin with shareholders’ money during periods when prices were at their peak. CEO Simon Gerovich chose to respond to these allegations with a comprehensive public statement.
Evaluation on Transparency and Investment Strategies
Simon Gerovich claimed that Metaplanet has so far announced all Bitcoin purchases at the time of transaction. He also stated that the company has publicly shared a dashboard where Bitcoin wallet addresses and assets can be monitored in real time.
Gerovich noted that the four major Bitcoin purchases, especially those made in September, occurred at the local price peaks of the period, but the company followed a long-term accumulation strategy. For this reason, he emphasized that purchases are not made based on short-term market movements.
The CEO pointed out that they also benefit from options in Metaplanet’s investment strategy. He stated that the premium income obtained especially from put option sales enabled the company to acquire Bitcoin at a lower effective cost. For example, if a $10,000 premium is received on the sale of a put option at $80,000, the cost of Bitcoin is effectively driven down to $70,000 when the option is exercised.
Pointing out that this approach increases the amount of Bitcoin per share by over 500 percent in 2025, Gerovich stated that they prioritize this metric when evaluating company performance.
Financial Results and Debt Issues
Evaluating the criticisms regarding net losses in the company’s financial statements, Gerovich stated that traditional net profit measurements in Bitcoin-focused treasuries may be misleading. He argued that the changes in value brought about by Bitcoin price fluctuations on the balance sheet do not fully reflect the health of the underlying business. At this point, he pointed out that the annual growth in operating profit demonstrates Metaplanet’s basic business structure.
Stating that most of the losses occurred due to accounting regulations on long-term held Bitcoin assets, Gerovich noted that the asset sale was not planned and its impact on financial reporting was technical.
Addressing the company’s borrowing issue, the CEO stated that Metaplanet discloses all basic information about loan conditions, loan usage and collateral arrangements to the public when the process is carried out. Gerovich claimed that names and interest rates were not shared at the request of lenders and that this was done in accordance with legal reporting rules.
