Metaplanet Posts $725M Q1 Loss Due to Bitcoin Valuation Losses

• Metaplanet reported a ¥114.5 billion net loss in Q1 FY2026.
• Bitcoin valuation losses totaled ¥116.3 billion during the quarter.
• Net sales increased 251.1% year-over-year to ¥3.08 billion.
• Operating profit rose 282.5% to ¥2.27 billion.
• Bitcoin holdings increased to 40,177 BTC by the end of March 2026.
• Metaplanet secured a $500 million Bitcoin-backed credit facility and had drawn $302 million as of May 13, 2026.

Metaplanet Reports Large Q1 FY2026 Loss

Metaplanet reported a net loss of ¥114.5 billion, approximately $725.6 million, for the first quarter of fiscal year 2026. The company stated that declining Bitcoin prices contributed to significant accounting valuation losses on its Bitcoin holdings. The company also reported an ordinary loss of ¥114.9 billion, or around $728 million, during the quarter. According to the filing, the losses were primarily driven by ¥116.3 billion, equivalent to approximately $736 million, in Bitcoin valuation losses.

Revenue and Operating Profit Increased During the Quarter

Despite the reported losses, Metaplanet recorded growth across its operating business segments during the quarter. Net sales increased 251.1% year-over-year to ¥3.08 billion, approximately $19 million. Operating profit rose 282.5% to ¥2.27 billion, or about $14.3 million. The company stated that revenue from its Bitcoin Income Generation business increased significantly during the quarter. This segment includes option premium strategies tied to Bitcoin derivatives and generated ¥2.54 billion in revenue.

Bitcoin Holdings Expanded to 40,177 BTC

Metaplanet increased its Bitcoin holdings to 40,177 BTC by the end of March 2026, compared with 35,102 BTC at the end of December 2025. The company stated that it maintained its position as the largest Bitcoin-holding listed company outside the United States.

During the quarter, Metaplanet continued raising capital through common share issuances, preferred shares, stock acquisition rights, and Bitcoin-backed credit facilities to support additional Bitcoin purchases. Metaplanet also disclosed that it secured a $500 million Bitcoin-collateralized credit facility. As of May 13, 2026, the company had drawn $302 million under the arrangement. Total assets declined to ¥466.7 billion at the end of March 2026 from ¥505.3 billion at the end of 2025, mainly due to lower Bitcoin valuations.

Bitcoin Price and Market Cap Declined During Q1 2026

Bitcoin experienced significant volatility between January and March 2026, beginning the quarter near the $95,000 range before facing a sharp market correction. During February, the cryptocurrency declined substantially as broader weakness across digital asset markets weighed on investor sentiment. By March 2026, Bitcoin prices showed partial recovery and traded within a lower range compared to the beginning of the quarter. The market capitalization of Bitcoin also declined during the period, falling from above $1.8 trillion earlier in the quarter to nearly $1.33 trillion by late March. The price decline affected the balance sheets of several publicly listed companies holding large Bitcoin reserves. Companies including Metaplanet reported major accounting valuation losses tied to their Bitcoin holdings during the quarter.

The company stated:

“The Company will continue to accumulate Bitcoin, grow Bitcoin per share, and allocate capital with discipline. Over time, it intends to develop financing capabilities, operating businesses, and institutional relationships that make its Bitcoin position more productive and durable. This work sits inside a larger shift in how money and capital markets are organized. The Company intends to contribute to the development of Japan’s digital capital markets.”

The statement outlined the company’s long-term focus on expanding its Bitcoin position while developing financing and operational capabilities linked to digital assets. Metaplanet also connected its strategy to the broader development of Japan’s digital capital markets. The company’s comments came as it continued increasing its Bitcoin holdings and securing additional capital through equity issuance and Bitcoin-backed financing arrangements during the quarter.

FAQs

1. Why did Metaplanet report a large loss in Q1 FY2026?
Metaplanet reported a ¥114.5 billion net loss mainly due to ¥116.3 billion in Bitcoin valuation losses during the quarter.

2. How much Bitcoin does Metaplanet currently hold?
Metaplanet held 40,177 BTC at the end of March 2026, compared with 35,102 BTC at the end of December 2025.

3. Did Metaplanet’s business revenue increase despite the losses?
Yes. Net sales increased 251.1% year-over-year to ¥3.08 billion, while operating profit rose 282.5% to ¥2.27 billion.

4. What financing arrangements did Metaplanet secure during the quarter?
Metaplanet secured a $500 million Bitcoin-backed credit facility and had drawn $302 million under the arrangement as of May 13, 2026.

Source: Metaplanet