Metaplanet CEO Defends Disclosure Practices Amid Bitcoin Strategy Criticism

• Simon Gerovich has publicly defended Metaplanet’s practices of disclosure, Bitcoin strategy, and financial transparency in response.
• The company reiterated its strategy of systematic Bitcoin accumulation, options-based cost reduction strategies

Metaplanet CEO Simon Gerovich responded to criticism about disclosure practices, Bitcoin purchases, options trading, and financial reporting transparency.  He said that it is easy to criticize without accountability, but he takes responsibility for all his public actions. Gerovich also denied accusations that the company’s disclosures were misleading, saying that such accusations were inflammatory and untrue. The company had to allocate more capital to income operations due to the volatility of the past six months.

Metaplanet publicly discloses all Bitcoin addresses, allowing shareholders to check their holdings in real-time through a dashboard. Gerovich said that this makes Metaplanet one of the most transparent publicly traded companies in the world. On the issue of purchases in September, it was alleged that the company bought at market peaks without notice.

Gerovich responded that Metaplanet made four purchases of Bitcoin in September, and each time they announced the purchase. He agreed that September marked the top of the local market but again stated that timing markets is not a strategy. The company uses a long-term strategy of systematic accumulation of Bitcoins irrespective of market prices. Gerovich pointed out that the company makes consistent announcements for all purchases of Bitcoin.

Options Strategy, Financial Reporting, and Transparency of Borrowing

Gerovich clarified that selling put options does not amount to speculating on the rising price of Bitcoin. Rather, the company utilizes options to buy Bitcoin at a cost lower than buying it outright.  He clarified that selling an eighty-thousand-dollar put with a ten-thousand-dollar premium reduces the cost.

The company took advantage of Bitcoin’s volatility to significantly lower the cost of acquisition in the fourth quarter. Gerovich explained that net income is not a good measure of performance for Bitcoin treasury firms. Operating income of 6.2 billion yen was recorded, showing a year-over-year surge of 1,694 percent. The recurring loss was solely due to the change in the value of long-term Bitcoins. The firm does not plan to sell the Bitcoins, he clarified.

Capital, Alignment of Shareholders, and Business Performance

Gerovich reiterated that he is a major shareholder and feels the impact of stock price fluctuations. He clarified that the funds have been raised strictly in line with the announced strategy and plans. The stock price of Metaplanet has dropped by 23%, while that of Bitcoin has fallen by 24% this year. The hotel operation segment reported revenue of 437 million yen and operating profit of 169 million yen in FY2025.

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