Tokyo-based Metaplanet Inc. reported a net loss of 114.5 billion yen ($725.6 million) for the first quarter of fiscal 2026, a result entirely shaped by a 24 percent drop in Bitcoin’s price under Japanese accounting rules.
The company itself characterized the driver of the loss as “short-term mark-to-market fluctuations” on its Bitcoin holdings, according to its earnings report. The results highlight the stark divergence between accounting requirements for digital assets and the performance of the underlying business.
The reported net loss was driven almost entirely by a single line item: a 116.4 billion yen ($737.6 million) unrealized valuation loss on its digital asset portfolio. Stripping out the non-cash Bitcoin markdown reveals a dramatically different picture, with company revenue climbing 251% year-over-year to $19.5 million and operating profit surging 283% to $14.4 million.
For investors, the report demonstrates the challenge of evaluating companies with a Bitcoin-centric treasury strategy. The result is a choice between focusing on the volatile, accounting-driven net loss or an underlying business whose operations and Bitcoin-related income generation are growing at a triple-digit pace. Metaplanet has a stated goal of holding 100,000 BTC by the end of 2026.
Bitcoin Accumulation Continues
The paper loss did not deter Metaplanet from expanding its treasury. The company added 5,075 BTC in the first quarter at an average price between $78,000 and $79,898, bringing its total holdings to 40,177 BTC as of March 31. The stack makes Metaplanet the third-largest publicly traded holder of Bitcoin globally, behind only MicroStrategy and Twenty One Capital, and controls roughly 87% of all Bitcoin held by listed companies in Japan, Coingecko data shows.
The firm’s aggressive accumulation has been funded by a mix of new equity and debt. Short-term borrowings increased during the quarter, with $302 million outstanding on its Bitcoin-collateralized credit facility as of May 13, 2026.
The ‘MicroStrategy of Japan’
Metaplanet’s operational growth was primarily driven by its newer “bitcoin income generation” business, which uses options strategies to generate yield from its large BTC position. This segment was the main contributor to the 283% jump in operating profit, supplementing revenue from a legacy hotel business.
The company adopted its “Bitcoin Standard” treasury strategy in April 2024, explicitly modeling itself after US-based software firm MicroStrategy. The strategy designates Bitcoin as the firm's primary treasury reserve asset. However, unlike MicroStrategy, which now operates under more favorable US accounting rules, Metaplanet must still mark its holdings to market value each quarter, leading to significant earnings volatility.
Metaplanet shares traded down 3.82% to 327 Japanese yen (about $2.07) in Tokyo following the report, according to Yahoo! Finance data.
This article is for informational purposes only and does not constitute investment advice.
