BlockBeats reported on June 11 that Simon Gerovich, CEO of the Japanese-listed company Metaplanet, which employs a Bitcoin reserve strategy, stated that the company is currently assessing whether it might be classified by the U.S. Internal Revenue Service (IRS) as a Passive Foreign Investment Company (PFIC) for its U.S. shareholders.

According to existing IRS guidelines, if 75% or more of a company’s income in a taxable year is passive income, or if 50% or more of the average assets held during that taxable year either generate passive income or are held for the purpose of generating passive income, the company will be classified as a PFIC for that taxable year. Although Metaplanet believes that a substantial majority of its goodwill can be classified as active assets, the IRS might not agree with this determination and may classify Metaplanet as a Passive Foreign Investment Company for the 2025 taxable year.

Metaplanet is currently working with advisors to provide its shareholders with clearer guidance, including whether it can provide information to enable shareholders to make a "Qualified Electing Fund" (QEF) election regarding their holdings. Additional guidance is expected to be made available in the near future. Note: A Passive Foreign Investment Company is a special classification under U.S. tax law that applies to certain non-U.S. companies, generally impacting how U.S. investors report and manage tax compliance for their holdings in such companies.