Metaplanet reported a substantial net loss of ¥114.5 billion ($725 million) for the first quarter of fiscal 2026, largely attributed to accounting valuation losses on its Bitcoin (BTC) holdings. This decline came in the wake of Bitcoin’s performance, which experienced a staggering 22% drop during the quarter, marking its worst first quarter since 2018.
The timing of this decline is particularly significant as it affects major corporate stakeholders, including Metaplanet itself. The company stated that the ordinary loss and overall net loss for owners of the parent stemmed primarily from these valuation losses due to the plummeting prices of Bitcoin at the quarter’s end. These fluctuations reflect the short-term mark-to-market assessment that accompanies such investments.
Despite the recent downturn in Bitcoin’s value, Metaplanet has not hesitated to expand its cryptocurrency holdings. The company reported an increase in its Bitcoin inventory, amounting to 40,177 BTC. On a per-share basis, their holdings rose by 2.8% quarter-over-quarter, now standing at 0.0247319 BTC per fully diluted share. Remarkably, Metaplanet holds approximately 87% of all Bitcoin owned by Japanese listed companies as of May 2026.
Interestingly, not all metrics reflected the losses associated with Bitcoin. Metaplanet’s operating performance showcased a significant upswing, with net sales surging by 251% year-over-year. Operating profit saw an even more striking increase, soaring 282% to reach ¥2.27 billion ($14.4 million).
In addition to the financial results, CEO Simon Gerovich addressed ongoing challenges regarding the company’s perpetual preferred share listing on the social media platform X. He mentioned two pivotal issues that need resolution before moving forward. Firstly, Japanese listing regulations stipulate that preferred dividends must be grounded in sustainable cash flows that remain viable across various market scenarios.
Metaplanet, according to Gerovich, has already demonstrated a consistent performance over six quarters in its Bitcoin Income Generation Business. He emphasized the importance of showcasing the business’s ability to generate stable, recurring cash flows irrespective of Bitcoin market fluctuations.
Secondly, Gerovich mentioned the firm’s intention to implement monthly dividends, which contrasts with Japan’s standard practice of annual or semi-annual dividends. Achieving this objective necessitates extensive work on procedures for record dates, shareholder identification, dividend calculations, and ongoing shareholder notifications.
As Metaplanet navigates these complexities, the company remains poised to adapt and innovate in a challenging market landscape.
