Metaplanet reported a $619 million net loss for fiscal year 2025, primarily due to a $665.8 million unrealized valuation loss on its Bitcoin holdings.
The loss stems from Japan’s mark-to-market accounting standards, which require companies to value crypto assets at prevailing market prices. As a result, fluctuations in Bitcoin directly impact reported earnings even when no assets are sold.
Importantly, the company classified the loss as a non-operating accounting adjustment, meaning it did not affect cash flow or liquidity.
Why This Matters for Investors
Mark-to-market accounting can amplify earnings volatility for companies holding large digital asset reserves. In periods of price decline, firms may report substantial paper losses despite unchanged treasury positions.
By the end of FY2025, Metaplanet held 35,102 BTC, representing a 1,892% increase year-over-year, underscoring its aggressive accumulation strategy.
CEO Simon Gerovich Reaffirms Long-Term Bitcoin Commitment
Simon Gerovich addressed investor concerns in a public statement, reiterating that the company views Bitcoin as a permanent reserve asset, not a short-term tactical allocation.
According to Gerovich:
- Bitcoin’s fixed supply underpins its long-term value thesis
- The company has no plans to liquidate holdings
- The balance sheet remains structurally strong
Metaplanet reported an equity ratio of 90.7%, stating that its balance sheet would remain fully covered even if Bitcoin’s price declined by as much as 86%.
Unlike some corporate treasury strategies that treat Bitcoin as a hedge or diversification tool, Metaplanet positions BTC as a core balance sheet asset.
Profits From Options Used to Acquire More Bitcoin
Despite reporting a net loss, the company generated profits through put option sales and spread strategies. A portion of those derivative gains was used to purchase additional Bitcoin.
This indicates the firm is actively managing its capital structure rather than passively holding assets — a strategy that introduces both potential upside and derivative-related risks.
Critics, however, argue that the company has not fully disclosed the detailed performance breakdown of these options strategies.
Metaplanet’s 2027 Expansion Plan: 175,000 BTC Target
Looking ahead, Metaplanet plans to significantly expand its Bitcoin treasury, targeting 175,000 BTC by 2027.
Achieving this goal will require:
- Ongoing capital raises
- Favorable investor sentiment
- Stable credit conditions
- A cooperative macro environment
Analysts note that a prolonged crypto bear market could pressure funding capacity and investor appetite for crypto-linked securities.
Conversely, a sustained Bitcoin recovery could quickly reverse mark-to-market losses and strengthen reported earnings.
Market Reaction: Divided Investor Sentiment
Market reaction has been divided. Supporters see Metaplanet’s approach as a bold long-term bet on digital assets. The critic claims the company delayed disclosure of September BTC buys made near local price highs and failed to fully explain losses tied to put option strategies, arguing that all Bitcoin was acquired using shareholder funds while core business operations remain weak. Some in the community echo concerns about transparency, borrowing terms, and the stock’s roughly 84% drop from last year’s peak.
However, others in the crypto space continue to defend CEO Simon Gerovich’s long-term Bitcoin strategy, framing the backlash as frustration from underwater investors rather than proof of wrongdoing.
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FAQs
Metaplanet recorded a $619M loss due to a $665.8M mark-to-market Bitcoin valuation decline, not from selling its BTC holdings.
No. The loss was accounting-based. Metaplanet still holds 35,102 BTC as a long-term treasury asset.
Metaplanet plans to expand to 175,000 BTC by 2027, depending on capital raises and Bitcoin market conditions.
Yes. The company reaffirmed its BTC accumulation plan and long-term treasury strategy.
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