Metaplanet CEO Defends Bitcoin Strategy Amid $1.2B Paper Losses

TLDR

• Metaplanet CEO Simon Gerovich defended the company’s Bitcoin strategy amidst accusations of misusing shareholder funds.
• The company reported a 1,694% year-over-year increase in operating profit, despite facing over $1.2 billion in unrealized Bitcoin losses.
• Gerovich clarified that Metaplanet’s Bitcoin purchases were disclosed publicly, with wallet addresses and holdings tracked in real-time.
• Metaplanet’s borrowing practices were fully disclosed, but lender identities and interest rates were withheld at the counterparty’s request.
• The CEO explained that selling put options helped reduce the effective cost of acquiring Bitcoin, benefiting shareholders during high volatility.

Metaplanet CEO Simon Gerovich responded to critics, defending the company’s Bitcoin strategy amid mounting paper losses. The company is facing scrutiny over Bitcoin purchases made at market peaks, non-disclosure of certain transactions, and borrowed funds tied to its Bitcoin holdings. Gerovich has refuted accusations of mismanagement, claiming the company’s approach remains focused on long-term accumulation.

CEO Defends Bitcoin Purchases and Strategy

Gerovich strongly denied allegations that Metaplanet purchased Bitcoin at a market top in September 2025. The CEO admitted that the price at the time was near a “local top” but maintained that the company’s strategy is not based on short-term market timing. “We focus on long-term accumulation,” Gerovich said in a public statement, emphasizing that the company’s goal remains to build a solid Bitcoin treasury over time.

The company reported that all Bitcoin purchases were disclosed at the time of acquisition. Gerovich noted that Metaplanet’s real-time Bitcoin holdings can be monitored through a live shareholder dashboard. The company’s transparency includes listing wallet addresses publicly, allowing investors to track holdings as they fluctuate.

In response to concerns regarding Metaplanet’s borrowing practices, Gerovich confirmed the company had disclosed its credit facility, drawdowns, and collateral terms. However, the identities of the lenders and the exact interest rates were withheld at the request of the counterparty. Gerovich assured shareholders that the terms were favorable, fully compliant with disclosure rules, and approved by the board.

Metaplanet’s options trading strategy also faced scrutiny, but Gerovich defended the firm’s use of put options. He explained that selling puts allowed the company to lower its effective cost of acquiring Bitcoin. As an example, Gerovich explained that a put option sold at $80,000 with a $10,000 premium would reduce the purchase price to $70,000.

Metaplanet’s Financials and Unrealized Losses

Despite a 1,694% year-over-year increase in operating profit, Metaplanet has faced losses on its Bitcoin holdings due to market fluctuations. Gerovich clarified that the reported losses were not due to operational failures but were a result of unrealized mark-to-market changes on Bitcoin.

Metaplanet’s current unrealized Bitcoin losses, tracked by CoinGecko, exceed $1.2 billion. However, Gerovich argued that these paper losses did not affect the company’s ability to meet its financial obligations. He also pointed out that the company’s hotel business had generated strong revenue, underscoring that Metaplanet remains diversified outside of crypto investments.

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