Tokyo-based firm Metaplanet is currently facing scrutiny regarding its transparency practices in relation to its significant investments in Bitcoin. Recent discussions on social media platforms have highlighted accusations that the company has failed to provide adequate clarity in its reporting of Bitcoin transactions, causing uncertainty among shareholders about its operational strategies.
Critics have taken to social media to voice concerns, suggesting that Metaplanet has been slow to announce its Bitcoin acquisitions and has engaged in questionable financial strategies that have led to shareholder losses. Allegations have surfaced claiming that the company bought Bitcoin at market highs using funds from shareholders and subsequently obscured the resulting financial impacts.
In response to these allegations, CEO Simon Gerovich issued a public statement aiming to clarify the company”s position. He affirmed Metaplanet”s dedication to transparency, asserting that all Bitcoin transactions have been disclosed publicly as they occurred. Gerovich pointed out the existence of a public dashboard displaying the company”s Bitcoin wallet addresses and current balances, which he claims enhances transparency for stakeholders.
Gerovich acknowledged that Metaplanet acquired substantial amounts of Bitcoin during price peaks in September, defending the company”s approach by highlighting a long-term investment philosophy that focuses on sustained accumulation rather than reacting to short-term market fluctuations. Additionally, the company engages in options trading to manage its investments, with Gerovich explaining how selling put options can effectively reduce acquisition costs. For example, a premium of $10,000 from a put option sold at $80,000 per Bitcoin could lower the net acquisition cost to $70,000 if that option is exercised.
These strategies have reportedly increased Bitcoin holdings per share by over 500 percent in recent years, a metric that Gerovich argues significantly reflects shareholder value. He also addressed concerns regarding the firm”s financial stability, suggesting that traditional profit-loss metrics can be misleading for companies heavily invested in Bitcoin. He explained that the inherent volatility of the cryptocurrency market can lead to fluctuating asset valuations that do not accurately represent operational performance.
Gerovich mentioned that annual growth evaluations in operating income offer a more reliable view of Metaplanet”s ongoing progress. He explained that many of the reported losses stem from accounting adjustments linked to long-term Bitcoin holdings rather than actual financial setbacks, as there are no immediate plans for asset liquidation. Furthermore, he assured that Metaplanet has fully disclosed its credit details for each transaction, although specific lender information is withheld due to legal agreements.
