Metaplanet CEO Bitcoin paper losses exceeded $1.2 billion in unrealized value, Gerovich took to social media platform X with a detailed, point-by-point rebuttal of the critics who had been questioning the Japanese firm’s transparency, governance, and strategic direction. Rather than retreating behind corporate PR language, he addressed each accusation head-on, calling several of the claims “factually incorrect” and challenging anonymous online critics to take accountability the way he does every single day as the face of a publicly listed Bitcoin treasury company.
This moment marks a flashpoint in the broader conversation about corporate Bitcoin strategy, disclosure obligations, and whether the traditional metrics investors use to judge companies can even apply to a firm explicitly built around holding Bitcoin as its primary treasury asset. The controversy surrounding Metaplanet offers a window into the tension every Bitcoin-holding public company now faces: operating at the intersection of volatile crypto markets and rigorous securities law.
Metaplanet CEO Bitcoin Paper Losses: Understanding the Scale
Metaplanet, the Tokyo-listed company often described as Japan’s answer to MicroStrategy, currently holds 35,102 BTC on its balance sheet. According to data tracked by CoinGecko, the company’s unrealized Bitcoin losses have surpassed $1.2 billion, a staggering figure that has drawn intense scrutiny from investors, analysts, and anonymous social media accounts alike.
To put this into context, Bitcoin’s price has fallen more than 40% from its September 2025 peak of approximately $114,000 to its current trading level around $67,900. For a company that made significant purchases near that peak, the accounting impact is severe — at least on paper. The company reported a net loss of 95 billion yen (approximately $619 million) for fiscal year 2025, with a 102.2 billion yen unrealized valuation loss on its Bitcoin holdings driving the headline figure.
However, CEO Gerovich argues vehemently that this framing misrepresents the company’s actual financial health. He points out that these are non-cash, mark-to-market accounting losses on assets the company has no intention of selling. In his view, focusing on unrealized losses to evaluate a Bitcoin treasury company is like judging a real estate firm by the daily fluctuation in property valuations rather than by the cash flow the properties generate.
Simon Gerovich’s Point-by-Point Defense
Addressing the Transparency Allegations
The criticism that stung hardest was the allegation that Metaplanet had concealed its high-priced Bitcoin purchases from shareholders. Anonymous accounts on X claimed the company deliberately delayed announcements of BTC buys made during September 2025’s local price peak to avoid negative attention.
Gerovich rejected this firmly. He confirmed that Metaplanet made four separate Bitcoin purchases throughout September 2025, totaling 11,832 BTC, and that each transaction was disclosed promptly through the company’s public dashboard. The purchases broke down as follows: 1,009 BTC on September 1st, 136 BTC on September 8th, 5,419 BTC on September 22nd, and 5,268 BTC on September 30th. Every single one was announced in real time.
Furthermore, Metaplanet publicly lists all Bitcoin wallet addresses, giving shareholders and outside observers the ability to verify holdings independently at any moment. The live shareholder dashboard the company maintains is available around the clock, ensuring that transparency isn’t just promised — it’s built into the infrastructure.
The “Local Top” Admission and Long-Term Vision
Gerovich acknowledged that September turned out to be a local top, but stated clearly: “our strategy isn’t about timing the market. It’s about systematically and long-term accumulating bitcoin, regardless of the price level at which it’s trading.”
This is consistent with what’s often called the MicroStrategy Bitcoin playbook — a strategy pioneered by Michael Saylor that treats Bitcoin not as a speculative trade but as a long-duration savings asset superior to cash. Under this philosophy, market timing is irrelevant. The only metric that matters is accumulating as much Bitcoin as possible over time relative to shares outstanding.
Bitcoin per share, which Gerovich identifies as Metaplanet’s primary KPI, rose more than 500% in 2025 despite the stock price declining sharply. That metric reflects how much Bitcoin value each shareholder controls, and it tells a very different story than the headline net loss figure.
The Options Trading Controversy
One of the more technically complex criticisms leveled at Metaplanet involves its put options strategy. Critics alleged the company was gambling with shareholder funds through derivatives trading without proper disclosure of the losses incurred.
Gerovich pushed back strongly on this characterization. He explained that Metaplanet’s options activity is a conservative income strategy designed to lower the effective cost of Bitcoin acquisition rather than to speculate on price direction. The mechanics are straightforward: if Bitcoin is trading at $80,000 and Metaplanet sells a put option at that strike while collecting a $10,000 premium, the effective cost basis drops to $70,000 — a meaningful discount versus buying directly on the open market.
This strategy, which exploits elevated Bitcoin implied volatility, has allowed the company to accumulate BTC at below-market prices during periods of uncertainty. Gerovich noted that in Q4 2025, the approach “meaningfully reduced Metaplanet’s effective Bitcoin costs,” making it a core part of the company’s Bitcoin income business rather than a reckless side bet.
Borrowing Practices and Governance Questions
Disclosure of the Credit Facility
Perhaps the most serious governance concern raised by critics was that Metaplanet had concealed the terms of Bitcoin-backed borrowing from its shareholders. Allegations surfaced that the company had taken loans using its BTC holdings as collateral while withholding interest rates and lender identities — a red flag for any public company investor.
Gerovich confirmed that Metaplanet disclosed the credit facility upon its establishment in October 2025, with subsequent drawdowns in November and December each accompanied by public announcements covering borrowing amounts, collateral details, and general terms. The one element withheld was the identity of the lender and the precise interest rate — and Gerovich was explicit that this was done at the counterparty’s request, not Metaplanet’s. He stressed that the terms were favorable, fully compliant with applicable disclosure rules, and approved by the board.
This distinction matters enormously. There is a significant difference between a company hiding information to protect itself from shareholder scrutiny and a company respecting a contractual confidentiality clause that is itself disclosed. Critics conflated the two, and Gerovich was right to call that out.
The Structural Tension at the Heart of Corporate Bitcoin Holdings
The allegations against Metaplanet expose what analysts are increasingly recognizing as a structural tension in the world of corporate crypto: Bitcoin’s on-chain transparency — where every transaction is publicly verifiable on a permissionless blockchain — does not automatically satisfy the disclosure requirements of securities law.
A company can post every wallet address online and still face legitimate questions about whether internal decision-making processes, borrowing arrangements, and risk controls meet the standards required of publicly traded firms. As corporate Bitcoin treasury strategies become more widespread, regulators and exchanges are likely to demand clearer frameworks that bridge these two worlds.
The Real Financial Picture: Operating Profit Surges
To understand why Metaplanet’s Bitcoin strategy defenders remain confident despite the headline losses, one needs to look past the net loss figure and examine the operational reality of the business.
Despite the $1.2 billion Bitcoin paper losses dominating the news cycle, Metaplanet reported operating profit of 6.29 billion yen ($41 million) for fiscal year 2025 — a staggering 1,694% increase year-over-year. Revenue for the year reached 8.9 billion yen (approximately $58 million), representing 738% growth compared to the prior year.
The company’s hotel business, which critics claimed was “in ruins,” actually recorded 437 million yen in revenue and 169 million yen in operating profit during FY2025, demonstrating that Metaplanet retains a functioning operational base entirely independent of Bitcoin price movements.
These numbers paint a picture of a company that is generating real cash, growing its operations at an extraordinary rate, and accumulating Bitcoin at scale — all while accounting rules force it to record non-cash impairments that have no bearing on whether the business can meet its obligations.
Market Reaction and What It Tells Us
The market’s response to Gerovich’s public defense was instructive. Metaplanet’s Tokyo-listed stock rose 2.90% to ¥319.00 following the CEO’s rebuttal, suggesting that investors found his arguments credible and reassuring. OTC shares (MTPLF) had dropped 64.6% over the same period.
The broader backdrop provides important context. Metaplanet is not alone in facing scrutiny over Bitcoin-related paper losses. Strategy (formerly MicroStrategy), the largest corporate Bitcoin holder globally, reported a $12.4 billion net loss in Q4 2025 as Bitcoin’s price deteriorated — yet the company continued its accumulation strategy without altering course. The pattern is consistent across the sector: companies that adopt the Bitcoin treasury strategy are explicitly choosing to accept mark-to-market volatility as the price of gaining long-term exposure to Bitcoin’s potential appreciation.
Metaplanet’s Path Forward: Target of 210,000 BTC by 2027
Despite the turbulence, Metaplanet has not wavered from its long-term accumulation target. The company aims to hold 210,000 BTC by 2027, funded through a combination of operating cash flows and capital raises. With 35,102 BTC currently on the balance sheet, the company has significant accumulation ahead of it — and Gerovich’s willingness to defend the strategy publicly, with his own capital at stake as a major shareholder, suggests he remains fully committed to the mission.
The CEO was explicit about his personal skin in the game. He noted that he has invested his own funds in Metaplanet, making any accusations of disregard for shareholder value particularly galling. When a CEO is losing money alongside shareholders, the alignment of interests is about as strong as it gets.
Why the Metaplanet Debate Matters Beyond Japan
The controversy around Metaplanet CEO Bitcoin paper losses is not just a story about one Japanese company. It’s a preview of the debates that will unfold across global markets as more corporations adopt Bitcoin treasury strategies and face the inevitable volatility that comes with holding a high-beta asset.
Questions about corporate Bitcoin disclosure standards, the appropriate use of equity and debt to accumulate crypto assets, and how regulators should treat unrealized losses on digital holdings are all going to become mainstream governance issues in the years ahead. Metaplanet is simply arriving at these questions earlier than most. A company that holds Bitcoin through a cycle downturn and maintains the financial discipline not to sell is, in the logic of the strategy, doing exactly what it promised to do.
Conclusion
The story of Metaplanet CEO Bitcoin paper losses reaching $1.2 billion is, at its core, a story about conviction meeting volatility. Simon Gerovich’s willingness to stand up publicly, name the allegations directly, and counter them with data reflects a level of corporate accountability that is genuinely rare in the world of crypto.
If you’re an investor tracking corporate Bitcoin treasury companies or evaluating whether Metaplanet’s strategy aligns with your own risk tolerance, now is the moment to go beyond the headlines. Dive into the actual operating profit figures, understand the options strategy, and make your own assessment of whether Metaplanet’s Bitcoin accumulation at 35,102 BTC is a foundation for long-term value or an overleveraged bet on a volatile asset.
See more: Comprehensive Coin Analysis Methods, Tools & Crypto Market Insights
