Metaplanet Posts $725 Million Q1 Net Loss as Bitcoin Price Decline Triggers Valuation Hit

Image Credit: Metaplanet

Metaplanet recorded a ¥114.5 billion ($725 million) net loss for the first quarter of fiscal 2026, driven by accounting valuation losses on its Bitcoin holdings after the cryptocurrency declined roughly 22% during the quarter. The Tokyo-listed firm disclosed the results alongside an update from CEO Simon Gerovich on delays affecting its planned perpetual preferred share listing.

Mark-to-Market Losses Drive ¥114.5 Billion Net Loss in Q1 

The quarterly loss was directly tied to the fall in Bitcoin prices at the end of Q1. In its results disclosure, the company said: 

“The ordinary loss and quarterly net loss attributable to owners of parent were primarily attributable to accounting valuation losses resulting from the decline in Bitcoin prices at the end of the first quarter and reflect short-term mark-to-market fluctuations.” 

The 22% Bitcoin price decline during the period represented the asset’s worst first quarter in eight years, contributing directly to Metaplanet’s valuation loss. 

Bitcoin Holdings Grow to 40,177 BTC Even as Valuation Losses Mount

Despite the price-driven loss, Metaplanet continued to accumulate Bitcoin during the quarter, growing its holdings to 40,177 BTC. Bitcoin holdings per fully diluted share rose 2.8% quarter-over-quarter to 0.0247319. 

As of May 2026, the company held approximately 87% of all Bitcoin held by Japanese listed companies. Operating results moved in the opposite direction from the net loss figure. Net sales climbed 251% year-over-year, and operating profit jumped 282% to ¥2.27 billion ($14.4 million).

Japanese Listing Rules and Dividend Logistics Behind Preferred Share Delays

Gerovich addressed delays to the company’s perpetual preferred share listing in a post on X, citing two specific obstacles. The first involves Japanese listing requirements that mandate preferred dividends be supported by sustainable cash flows across multiple market scenarios. Gerovich said:

“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.” 

The second involves the operational complexity of Metaplanet’s plan to pay monthly dividends, a cadence that exceeds Japan’s standard once or twice-yearly schedule. Gerovich said implementing monthly payments requires substantial work on record-date procedures, shareholder identification, dividend calculation, and recurring shareholder notice operations.

Metaplanet’s Preferred Share Would Be Only the Seventh Listed in Japan

If the preferred share listing proceeds, it would be a notable first for Japan’s capital markets. Gerovich noted that few listed preferred shares currently trade in Japan and that Metaplanet’s offering, if approved, would become only the seventh in the market and the country’s first perpetual preferred share. No timeline for the listing was provided in the disclosure.