Metaplanet, a publicly listed company in Japan, said in an Aug. 18 filing that its internal equity pool mechanism had increased dilution for existing shareholders. The board then froze the pool at 319.5 million shares rather than canceling it. The filing said the pool accounted for roughly 25% of the company’s total shares outstanding. It was originally established in 2023 at 20% of issuable shares, but expanded as Metaplanet repeatedly issued new stock from 2024 onward to buy Bitcoin. Over that period, the company’s total share count rose from 153.9 million to 1.35 billion. Under the freeze, holders cannot sell the shares until Aug. 17, 2031. Ten days after the disclosure, CEO Simon Gerovich exercised one-third of the vested rights and acquired about 64.03 million shares for 6.4 billion yen. On Tuesday, Metaplanet shares fell 9.96% to close at 244 yen. Some shareholders argued that the company’s roughly $2 billion market capitalization sits below the roughly $3.4 billion value of its Bitcoin holdings, while insiders still retain claims tied to about one-quarter of the company’s equity.
Metaplanet, a listed company in Japan, said in an Aug. 18 filing that its internal equity pool mechanism had worsened dilution for existing shareholders. The board later froze the pool at 319.5 million shares instead of scrapping the arrangement.
The pool grew to about one-quarter of total shares
The filing said the internal equity pool represented about 25% of the company’s total shares outstanding. It was first set up in 2023 at 20% of issuable shares. As Metaplanet repeatedly issued new shares from 2024 to purchase Bitcoin, its total share count expanded from 153.9 million to 1.35 billion, and the internal pool grew along with it to its current size.
Sale restriction runs through Aug. 17, 2031
According to the filing, holders will be barred from selling the shares until Aug. 17, 2031 under the freeze arrangement.
Ten days after the disclosure, CEO Simon Gerovich exercised one-third of the vested rights and bought about 64.03 million shares for 6.4 billion yen.
Shareholder dissatisfaction intensified
On Tuesday, Metaplanet shares fell 9.96% to close at 244 yen. Some shareholders said the company’s market capitalization, at about $2 billion, was below the roughly $3.4 billion value of its Bitcoin holdings, while insiders still had claims tied to one-quarter of the company’s equity. The item was cited by Techub from BeInCrypto.
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