Metaplanet CEO Simon Gerovich has rejected accusations that the company misled investors about its Bitcoin treasury strategy, pushing back against critics who claim the firm withheld key information about cryptocurrency purchases and derivatives trades.
The defense comes as investor scrutiny intensifies around leveraged Bitcoin treasury companies following significant market drawdowns in recent months.
Gerovich addressed what he described as “anonymous accounts” on social media platform X, defending the company’s disclosure practices and financial reporting.
Critics have accused Metaplanet of delaying price-sensitive announcements about large Bitcoin purchases funded with shareholder capital, obscuring losses from its options trading strategy, and failing to fully disclose the terms of Bitcoin-backed borrowings. In a detailed Friday post, Gerovich argued that all material transactions were promptly reported and that critics were misinterpreting financial statements.
“Metaplanet made four Bitcoin purchases in September 2025 and promptly announced each,” Gerovich said, rejecting claims that the company secretly bought at local price peaks without disclosure. The company’s public dashboard shows purchases of 1,009 BTC on Sept. 1, 136 BTC on Sept. 8, 5,419 BTC on Sept. 22, and 5,268 BTC on Sept. 30, 2025.
The purchases are reflected on public tracker Bitcointreasuries.net, along with corresponding public announcements and financial statements. Gerovich emphasized that the company’s strategy of selling put options and put spreads was designed to acquire Bitcoin below spot prices and monetize volatility for shareholders, rather than speculate on short-term price movements.
The CEO contested the use of net profit as a performance metric for Bitcoin treasury companies, pointing instead to Metaplanet’s revenue and operating profit growth from Bitcoin-related activities, particularly options income. The company reported fiscal 2025 revenue of 8.9 billion Japanese yen, approximately $58 million, up roughly 738% year-over-year.
However, Metaplanet booked a net loss of about $680 million due to the sharp decline in Bitcoin’s price during the period. Gerovich argued that treating these non-cash losses as evidence of strategic failure misunderstood the accounting treatment of digital assets.
Regarding borrowing arrangements, Gerovich said Metaplanet established a credit facility in October 2025 and disclosed subsequent drawdowns in November and December. Information on borrowing amounts, collateral, structure, and broad interest terms is available on the company’s disclosures page, he noted.
The lender’s identity and exact interest rates were withheld at the counterparty’s request, Gerovich explained. He argued that the borrowing conditions were favorable and that Metaplanet’s balance sheet remained solid despite Bitcoin’s recent drawdown.
Gerovich’s defense arrives amid broader backlash against publicly listed Bitcoin treasury strategies. Strategy, the largest corporate holder of Bitcoin, reported a $12.4 billion net loss in the fourth quarter of 2025 as Bitcoin fell 22% over the period. The company emphasized a “stronger and more resilient” capital structure and an “indefinite” Bitcoin time horizon despite the losses.
The controversy highlights growing tensions around the sustainability and risk profile of Bitcoin-heavy corporate treasury models. As Bitcoin’s price volatility continues, investors are demanding greater transparency around the mechanics of leveraged Bitcoin acquisition strategies, particularly those involving derivatives and debt financing.
Metaplanet’s stock performance and investor sentiment have been affected by the broader cryptocurrency market downturn. The company’s strategy mirrors that of other publicly traded firms that have converted treasury reserves into Bitcoin, betting on long-term appreciation despite short-term volatility.
The debate over proper disclosure standards for Bitcoin treasury companies is likely to intensify as more traditional corporations consider similar strategies. Accounting treatment of cryptocurrency holdings remains a contentious issue, with critics arguing that mark-to-market losses should be weighed against operational performance metrics.
Cointelegraph reached out to Metaplanet for additional comment, but had not received a response by publication time. The company continues to maintain its Bitcoin-focused strategy despite market headwinds and investor criticism.
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