Metaplanet booked a ¥114.5 billion ($725 million) net loss for the first quarter of fiscal 2026, driven almost entirely by accounting valuation losses on its Bitcoin holdings after the cryptocurrency fell roughly 22% in Q1 — its worst first quarter in eight years. Despite the red ink, the Tokyo-listed firm actually grew its Bitcoin stack to 40,177 BTC, and its core business posted a 282% jump in operating profit.
The numbers behind the loss
The net loss is a paper one. Under Japanese accounting standards, companies must mark their crypto assets to market at the end of each quarter. Bitcoin's slide from around $120,000 to the mid-$90,000s during the period triggered a massive non-cash charge. But Metaplanet's real business — selling Bitcoin-related financial products and services — is humming. Net sales climbed 251% year-over-year and operating profit hit ¥2.27 billion ($14.4 million), good for a 73.6% operating margin. The company left its full-year guidance unchanged: ¥16 billion in revenue (up 80% from fiscal 2025) and ¥11.4 billion in operating profit.
Why they kept buying
Metaplanet didn't just hold its Bitcoin — it added to the pile. The company now holds roughly 87% of all Bitcoin held by Japanese listed companies as of May 2026. Even after dilution from the share count increase, BTC per fully diluted share rose 2.8% quarter-over-quarter to 0.0247319. The logic: the firm treats its Bitcoin treasury as a long-term asset and uses debt or equity raises to accumulate more during dips. The Q1 price drop was, from that perspective, a buying opportunity.
The preferred share puzzle
Metaplanet has been planning to list perpetual preferred shares, a first for Japan, but the path isn't smooth. Two hurdles remain. First, Japanese listing rules require Metaplanet to demonstrate sustainable cash flows across multiple market scenarios — a bar that's harder to clear when your biggest asset can swing 20% in a quarter. Second, implementing monthly dividends on the preferred shares requires substantial operational work, from setting up payment infrastructure to managing investor communications. If the company clears those, its offering would become only the seventh listed preferred share in Japan and the country's first perpetual one. The next update on progress is expected in the coming weeks.
