Metaplanet Reports $725M Q1 Loss as Bitcoin Price Drop Impacts Holdings

Japanese investment firm Metaplanet posted a net loss of ¥114.5 billion ($725 million) for the first quarter of fiscal 2026 after a sharp decline in Bitcoin prices triggered major accounting valuation losses. The company said the losses were largely tied to mark-to-market adjustments on its growing Bitcoin treasury holdings during one of the cryptocurrency’s weakest quarterly performances in recent years.

Bitcoin fell approximately 22% during the first quarter of 2026, marking its worst Q1 performance since 2018. The downturn affected several corporate Bitcoin holders, including Tokyo-listed Metaplanet, which has aggressively expanded its BTC treasury strategy over the past year.

According to the company, the reported ordinary and net losses were mainly caused by temporary valuation adjustments linked to the drop in Bitcoin prices at the end of the quarter. Despite the setback, Metaplanet continued increasing its Bitcoin reserves, bringing total holdings to 40,177 BTC. The company also noted that its BTC holdings per fully diluted share rose 2.8% quarter-over-quarter to 0.0247319 BTC. As of May 2026, Metaplanet reportedly controls nearly 87% of all Bitcoin held by publicly listed Japanese companies.

While Bitcoin-related losses weighed heavily on earnings, Metaplanet’s core business performance showed strong growth. Net sales surged 251% year-over-year, while operating profit climbed 282% to ¥2.27 billion ($14.4 million), highlighting continued momentum in the firm’s operations.

CEO Simon Gerovich also addressed delays surrounding the company’s planned perpetual preferred share listing in Japan. He explained that regulators require stable and sustainable cash flow generation before approving preferred dividend structures. Gerovich added that Metaplanet’s plan to issue monthly dividends creates additional operational and administrative challenges. If approved, the offering would become Japan’s first perpetual preferred share and only the seventh preferred share listing in the country.