The Bitcoin Peak: A Tale of Hubris and Yen

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In the grand theater of finance, where fortunes rise and fall with the whims of the market, Metaplanet’s CEO, Simon Gerovich, has taken center stage, not as a hero, but as a man who bought Bitcoin at its zenith. Ah, the irony! While the world watched, he dipped his quill into the ink of optimism, only to find the parchment of reality smudged with red. Bitcoin, once soaring at $68,000, now languishes, a shadow of its former self, down 45% from its October glory. And Metaplanet’s shares? They have plummeted 85% from their 2025 peak, a descent as dramatic as a Chekhovian tragedy.

Gerovich, ever the wordsmith, took to X (formerly the platform of birdsong and bile) to address the anonymous whispers that Metaplanet had hidden its Bitcoin purchases, botched options trading, and kept borrowing details as secret as a Russian peasant’s diary. “It’s easy to hide behind anonymous accounts,” he penned, “to criticize others and incite outrage without taking any responsibility.” Ah, the modern lament of the accused, as old as the hills and as fresh as yesterday’s bread.

The Peak Purchase: A Silent Symphony?

The accusation? That Metaplanet bought Bitcoin at its September peak, using funds from a public offering, and then retreated into silence, like a bear in winter, until the price might recover. Gerovich, with the precision of a surgeon (or perhaps a bureaucrat), confirmed four Bitcoin purchases in September, each announced with the fanfare of a village crier. “September marked a local peak,” he admitted, “I have no intention of denying that. However, our strategy is not about timing the market. It is about accumulating Bitcoin long-term and systematically.” A noble sentiment, though one wonders if the system includes a crystal ball.

The Options Strategy: A Gamble or a Gambit?

Critics, those ever-present specters of doubt, claimed that selling put options was a directional bet on Bitcoin’s ascent, a bet that failed as spectacularly as a first-act proposal in a Chekhov play. Gerovich, undeterred, explained that if Bitcoin’s spot price is $80,000 and the company sells a put at that level with a $10,000 premium, the effective purchase cost drops to $70,000. “Better terms than buying on the open market,” he declared, as if negotiating the price of a samovar at a Moscow bazaar. Bitcoin per share, the company’s primary KPI, rose over 500% in 2025, a statistic as impressive as it is irrelevant in the face of current losses.

Financial Results: Profit or Perdition?

Net profit, Gerovich argued, is not the yardstick by which a Bitcoin treasury company should be measured. He pointed to an operating profit of 6.2 billion yen, up 1,694% year-over-year, a figure as dazzling as it is dubious. The net loss, he explained, stems from unrealized price changes on Bitcoin the company does not plan to sell. Ah, the phantom pains of paper losses! He also dismissed claims that Metaplanet’s hotel business is “in ruins,” noting it recorded 437 million yen in revenue and 169 million yen in operating profit in FY2025. A modest success, perhaps, but enough to keep the lights on and the vodka flowing.

On borrowing, the company disclosed terms, collateral, and amounts across three separate announcements. Lender names and exact interest rates were kept private at the lender’s request, not Metaplanet’s. A touch of mystery, like a hidden chapter in a Dostoevsky novel. Metaplanet holds 35,102 BTC, and shares trade at 307 yen. Gerovich, a major shareholder himself, assured that every yen raised has been used exactly as disclosed. A man of his word, or so he claims.

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FAQs

Why is Metaplanet’s stock down if they hold so much Bitcoin?

Metaplanet shares have dropped roughly 85% from their 2025 peak, largely mirroring Bitcoin’s 45% decline from recent highs. A tragic correlation, like two characters in a Chekhov play, bound by fate and misfortune.

How does Metaplanet’s Bitcoin options strategy actually work?

The company sells put options to lower its effective purchase price. For example, selling a put can reduce the buy price to $70,000. A clever tactic, though one wonders if it’s enough to outwit the fickle market.

Is Metaplanet losing money on its Bitcoin strategy?

The company reported a net loss due to unrealized Bitcoin price changes, but operating profit surged 1,694% to 6.2 billion yen. A financial tightrope walk, with the net yet to be fully realized.

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2026-02-20 14:22