Metaplanet CEO: “Full transparency on both bitcoin purchases and borrowing disclosures… will respond firmly to false claims”

Simon Gerovich, head of Metaplanet, has moved to rebut head-on the recent controversy over alleged disclosure failures and options strategies. Stressing transparency, he said he would “take public responsibility for every statement and the company’s actions.”

On the 20th, CEO Gerovich wrote on X that “it’s easy to hide behind an anonymous account and criticize, but I have no hesitation in taking public responsibility for every decision and strategy of the company,” and addressed the allegations point by point.

On claims that disclosures were inadequate, he drew a clear line, saying they are “not true.” Gerovich said that “as bitcoin volatility has expanded sharply over the past six months, we have allocated capital to the income business and used volatility through selling put options and put spreads,” adding that “some funds were used to purchase bitcoin for long-term holding, and those decisions were disclosed immediately.” He also noted that the company “discloses its bitcoin addresses and enables shareholders to check holdings via a real-time dashboard.”

He also pushed back against criticism that the company “stayed silent after buying at the top” in connection with bitcoin purchases in September. “We bought bitcoin on four occasions during September, and every purchase was disclosed immediately at the time,” he said, emphasizing that “the strategy is long-term, systematic accumulation, not market timing.”

Regarding the options trading strategy, he said, “Selling put options is not simply a bet on prices rising; it is a means of securing bitcoin at an effective acquisition price lower than spot.” For example, if the spot price is $80,000 and the company sells a put option at the same strike and receives a $10,000 premium, the effective acquisition price becomes $70,000. He also said that “bitcoin holdings per share increased by more than 500% last year.”

He also argued that “net profit is not an appropriate metric for evaluating a bitcoin treasury company” when it comes to interpreting the financial statements. Highlighting that operating profit rose 1,694% year on year to 6.2 billion yen, he said the recurring loss is merely an accounting fluctuation stemming from unrealized valuation losses on long-term bitcoin holdings, and does not signify a failed strategy.

On suspicions related to borrowing, he said the company made timely disclosures on three occasions, including “the establishment of a credit line in October and the timing of drawdowns in November and December,” and that it “disclosed the borrowing amount, collateral, interest-rate structure, and purpose in full.” He added, however, that “the identity of the lender and specific interest-rate levels were kept confidential at the counterparty’s request.”

He also noted that he is a major shareholder of Metaplanet, saying he “personally feels the stock-price decline as well.” He added that “Metaplanet is designed to provide a leveraged investment opportunity in bitcoin and aims to outperform bitcoin in bull markets,” claiming that “in this year’s down market, while bitcoin fell 24%, the company’s share price fell only 23%.”

He continued, “Legitimate criticism and questions are always welcome, but we cannot tolerate misinformation distorting shareholder judgment in a highly volatile market,” reiterating that he will “take responsibility for all actions and statements.”