Metaplanet CEO Faces Criticism Over Bitcoin Trade Transparency

This week, there has been considerable debate surrounding the financial activities of a company regarding its Bitcoin transactions. Critics on various platforms have suggested there are underlying issues with transparency about significant purchases and borrowings.

The leader of the company, Simon Gerovich, firmly asserts that all significant purchases were properly communicated. He emphasized the availability of a transparent dashboard that displays their trading activities in real-time.

Metaplanet CEO Faces Criticism Over Bitcoin Trade Transparency

Reports indicate that the firm made considerable investments in Bitcoin throughout September 2025, with information readily available on public trackers. For instance, Bitcointreasuries.net not only displays their transactions but also aligns with the company’s official announcements.

Understanding the Disclosures

Gerovich insists that every transaction and options trade has been documented as they occurred. He highlighted that anonymous critiques often misinterpret financial documents and mistake normal accounting adjustments for secretive practices.

Whether this statement will soothe detractors largely depends on investor perceptions, particularly given that Bitcoin accounts for a significant portion of the company’s assets. Some investors may prioritize thorough disclosures, while others may demand heightened clarity during peak trading periods.

The company defended its use of options strategies, stating that these moves allow for acquiring Bitcoin at lower prices over time and provide a consistent income from options trading. This tactic is not uncommon, as it enables firms to earn premiums through assuming purchase obligations.

However, this strategy also comes with potential pitfalls, such as significant paper losses in turbulent market conditions. Investors may perceive this as a safe income approach or as a high-risk venture.

Evaluating Financial Losses

Analysis shows that while the company reported robust operating metrics linked to options trading, its significant net loss was primarily due to the decline in Bitcoin’s market valuation.

In fiscal 2025, Metaplanet disclosed revenues of ¥8.9 billion (around $58 million) but also reported a staggering net loss of approximately $680 million. This disparity highlights the challenges of mark-to-market accounting practices for Bitcoin assets.

This accounting framework can yield substantial non-cash losses for firms holding Bitcoin, particularly in down markets. Stakeholders often rely on these figures to assess the financial health and risk exposure of such companies.

Details on Borrowings and Counterparties

Gerovich confirmed the establishment of a credit line, mentioning that any withdrawals had been noted in subsequent filings. However, he pointed out that the lender requested confidentiality regarding its identity and specific interest rates.

This level of discretion is commonplace in financial arrangements. Yet, when loans are supported by volatile assets, the absence of complete transparency can lead to unease among investors.

While the company suggests the borrowing terms are beneficial, critics caution that vague conditions might obscure potential risks that could lead to forced sales of assets.

Featured image from Pexels, chart from TradingView

Emily Walker
Emily Walker
Crypto News Editor

Emily brings structure, clarity, and journalistic integrity to Bitrabo’s daily news coverage. With years of experience in tech journalism, she ensures that every headline, update, and developing story is accurate and impactful. From breaking regulatory news to market movements, Emily’s editorial oversight keeps Bitrabo’s news content timely, trusted, and engaging.