Metaplanet Posts ¥114.5B Q1 Loss on Bitcoin Markdowns

Metaplanet reported a net loss of ¥114.5 billion ($725.6 million) for the first quarter of fiscal 2026 after recording ¥116.4 billion in unrealized bitcoin valuation losses at the quarter end. The losses were recorded under mark-to-market accounting.

Revenue rose to ¥3.08 billion ($19.5 million), up 251.1% year over year, and operating profit increased to ¥2.3 billion ($14.4 million), up 282.5%. Management attributed the operating gains to growth in its bitcoin income generation business, including options-based strategies on bitcoin holdings, and to contributions from its hotel operations.

The bitcoin valuation hit was unrealized, the filing noted. Metaplanet added 5,075 BTC during the quarter, bringing its total to 40,177 BTC as of March 31.

Within Japan, Metaplanet holds about 87% of the bitcoin reported by listed companies. The company ranks as the third-largest corporate bitcoin holder globally, behind Strategy at 818,869 BTC and Twenty One Capital at 43,514 BTC.

Metaplanet plans to expand its bitcoin position through a mix of equity issuance and debt financing. It has arranged a $500 million bitcoin-collateralized credit facility and had drawn $302 million under that line as of May 13.

The company monitors key performance indicators including total bitcoin holdings, bitcoin per share and BTC yield, which was 2.8% for the quarter. It also follows mNAV, a multiple that compares enterprise value to the market value of net bitcoin assets, and reported mNAV frequently traded below prior-quarter levels during the recent market correction.

Fiscal year 2026 guidance was left unchanged. Metaplanet targets total revenue of ¥16 billion ($101.4 million) and operating profit of ¥11.4 billion ($72.2 million), increases of about 80% and 81% year over year, respectively.

In its report, Metaplanet wrote: “The Company will continue to accumulate Bitcoin, grow Bitcoin per share, and allocate capital with discipline.” The report added the company intends to develop financing capabilities, operating businesses and institutional relationships to make its bitcoin position more productive and durable.

Metaplanet adopted a ‘Bitcoin Standard' in April 2024, designating bitcoin as its primary treasury reserve asset. The company recorded the unrealized valuation loss in the quarter because bitcoin prices fell at the close of the period.