Japan's Metaplanet (TSE: 3350) reported a net loss of ¥114.5 billion ($725.6 million) for Q1 2026, driven entirely by Bitcoin valuation losses. According to reports from Metaplanet, the loss resulted from $737 million in non-cash Bitcoin writedowns as Bitcoin fell 24% from roughly $87,000 on January 1 to around $66,000 on March 31. Despite the significant mark-to-market impact, the company demonstrated strong operational performance with revenue rising 251% year-over-year to ¥3.08 billion ($19.5 million) and operating profit climbing 283% to ¥2.27 billion ($14.4 million), implying a 73.6% operating margin. The operational picture was sharply different from the accounting losses, with the Bitcoin Income Generation business driving the majority of revenue growth through options strategies on the company's BTC stack.
The company added 5,075 BTC during Q1 at an average acquisition price near $79,000, bringing total holdings to 40,177 BTC as of March 31. As reported by Metaplanet, the company raised ¥12.2 billion in new shares in February and ¥40.8 billion in March to fund these purchases, while drawing on a $500 million Bitcoin-backed credit facility with $302 million outstanding as of May 13. The company's BTC Yield metric came in at 2.8% for the quarter, and Metaplanet maintains its long-term target of 210,000 BTC by the end of 2027. The company is now the largest public Bitcoin holder outside the U.S., controlling approximately 87% of all Bitcoin held by publicly listed companies in Japan. Metaplanet did not sell any Bitcoin during the quarter, maintaining its stated strategy to continue accumulating regardless of short-term accounting outcomes.
According to reports from Metaplanet, the company maintained its full-year 2026 forecast unchanged, projecting ¥16 billion in net sales and ¥11.4 billion in operating profit. CEO Simon Gerovich described the quarter as demonstrating the company's dual nature: a growing operational business alongside short-term accounting volatility from Bitcoin's price movements. The company did not provide ordinary or net income guidance due to Bitcoin price sensitivity. Metaplanet shares fell 3.82% to ¥327 on May 13 in Tokyo following the report. The company began its Bitcoin treasury strategy with fewer than 100 BTC in April 2024, and its stock has risen more than 7,500% from those levels despite the Q1 paper loss.
In addition to fiscal results, Metaplanet CEO Simon Gerovich addressed delays in the company's perpetual preferred share listing on X. Gerovich outlined two key considerations for the listing, which faces regulatory hurdles due to Japanese listing rules requiring preferred dividends to be supported by sustainable cash flows across multiple market scenarios. "Metaplanet already has a six-quarter track record in its Bitcoin Income Generation Business, and we believe it is important to continue demonstrating that the business can generate stable, recurring cash flows across both strong and weak Bitcoin market conditions," Gerovich stated. The company plans monthly dividends, well above Japan's typical once or twice-yearly cadence, which requires substantial work on record-date procedures, shareholder identification, and recurring operations. If approved, Metaplanet's offering would become only the seventh perpetual preferred share in Japan and the country's first.
