Metaplanet posts $725M Q1 loss, delays preferred shares

Metaplanet posted a $725 million (¥114.5 billion) loss for the quarter ended March 31, the Tokyo-based company reported, citing markdowns to its Bitcoin holdings and a delay in issuing two proposed preferred share products, MARS and MERCURY.

The loss widened from a $31 million (¥5 billion) deficit in the same period a year earlier and was driven mainly by decreases in the value of the company’s crypto treasury as Bitcoin pulled back from last year’s highs. During the quarter Metaplanet added 5,075 Bitcoin to its balance sheet, bringing its total to 40,177 BTC. At roughly $79,300 per coin, the holding was valued near $3.18 billion.

Revenue from selling Bitcoin options rose to $15.8 million (¥2.5 billion) in the quarter, up from $4.8 million (¥770 million) a year earlier. Metaplanet has shifted much of its business away from hotel management and now derives most of its earnings from products tied to its Bitcoin position, including options sales and related services.

Shares closed at ¥327.00 on Wednesday, up about 5.8% over the past month while remaining roughly 45% below their level a year earlier. The company also reported that its investor base expanded to roughly 250,000 total shareholders, up from about 63,600 a year ago.

Metaplanet has proposed dividend-style preferred shares called MARS and MERCURY that would resemble a product used by another Bitcoin-focused firm, but the offerings have not been issued. CEO Simon Gerovich wrote on X that bringing the products to market is “taking longer than initially anticipated,” and that the company is adapting their design to fit Japanese listing and dividend practices, which typically involve one or two distributions per year.

In related developments, a large U.S. corporate buyer of Bitcoin resumed purchases after its chairman clarified earlier comments about potentially selling holdings to fund dividends, saying the firm does not plan to be a net seller of Bitcoin. Metaplanet has positioned its preferred share proposals with reference to that product type.

The company’s financial disclosures show large unrealized losses tied to Bitcoin price swings while revenue from trading and options activity has increased. Management continues to accumulate Bitcoin and to develop products intended to provide returns linked to the company’s crypto holdings.