Metaplanet CEO Denies Hidden Losses and Rejects Claims Over BTC Options Trades

• Simon Gerovich denies claims of undisclosed Bitcoin trades.
• The company says put options strategy lowered Bitcoin entry costs.
• He explained the goal is to steadily increase holdings regardless of short-term price movements.

Metaplanet CEO Simon Gerovich has pushed back against allegations that the company hid losses and speculated on Bitcoin through risky options trades. The criticism emerged this week from an anonymous social media account. Gerovich said the firm’s strategy focused on lowering acquisition costs, not betting on price swings.

Allegations Surface Online

The dispute involves Tokyo-listed Metaplanet, which has shifted toward a Bitcoin treasury strategy. An anonymous post accused the company of withholding key disclosures, buying Bitcoin near market highs, and failing to fully explain its options trading activities.

The post claimed that Metaplanet purchased Bitcoin in September, near a local peak, and did not immediately disclose the timing of those purchases. It also alleged that the company used shareholder funds for put option trades that resulted in unfavorable outcomes.

Additional criticism focused on borrowing practices. The post questioned why certain loan details, including interest rates and lender identity, were not publicly disclosed despite Bitcoin being used as collateral. It also cited the company’s share price decline from last year’s high as evidence of poor management decisions.

CEO Responds to Disclosure Claims

Gerovich responded publicly, rejecting the allegations. He said Metaplanet disclosed four separate Bitcoin purchases during September, as they occurred. He added that the company maintains a public dashboard that allows shareholders to track its Bitcoin addresses and holdings in real time.

While September later proved to be a short-term peak for Bitcoin, Gerovich said the company does not attempt to time the market. Instead, it follows a long-term accumulation plan. The goal, he said, is to steadily increase Bitcoin holdings regardless of short-term price movements.

Gerovich also addressed the claim that the company delayed announcing purchases. He said disclosures were made when decisions were finalized and executed, in line with regulatory requirements.

Explaining the Options Strategy

A central issue in the debate is Metaplanet’s use of put options. The critics argued that selling put options exposed the company to losses if Bitcoin prices fell.

Gerovich said the strategy was designed to reduce effective purchase costs. By selling put options, the company collects premiums. If Bitcoin trades at $80,000 and Metaplanet sells a put at that price while receiving a $10,000 premium, the effective cost basis would be $70,000 if exercised, he explained.

He said this approach allows the company to acquire Bitcoin at a lower average price than buying at the prevailing spot rate. The strategy, he added, aims to improve cost efficiency rather than speculate on short-term price direction.

Financial Reporting and Borrowing

Gerovich also responded to concerns about financial results. He said reported net losses reflect unrealized valuation changes on long-term Bitcoin holdings. He pointed to the operating profit of 6.2 billion yen, up 1,694% year over year, as a measure of operational performance.

On borrowing, Gerovich said the company disclosed the establishment of a credit facility in October and subsequent drawdowns in November and December. While the lender’s name and specific interest rate were not disclosed, he said that was done at the counterparty’s request. He stated that the loan terms were communicated within regulatory guidelines.

Broader Context

Metaplanet’s share price has fallen sharply from its peak last year. Gerovich said the stock’s year-to-date decline has closely tracked Bitcoin’s performance during the same period. He added that he is a major shareholder and is directly affected by price movements.

The exchange highlights ongoing scrutiny facing public companies that hold Bitcoin as a treasury asset.

Related: Metaplanet Resumes Bitcoin Buying Spree After 3 Month Pause