Metaplanet CEO Simon Gerovich has addressed controversy over the company’s executive compensation plan and his relationship with shareholder MMXX Ventures, saying the company failed to fully explain its 10th stock acquisition rights incentive plan and MMXX’s organizational structure.
Gerovich responds to questions over MMXX ties
In his statement, Gerovich said he is a major shareholder in MMXX’s parent company, but not a controlling one. He also said he has not been involved in that company’s trading decisions.
How the incentive plan became a flashpoint
The incentive plan was established in December 2022 and set a reward pool equal to 20% of Metaplanet’s fully diluted share capital. After the company shifted to a bitcoin treasury strategy in April 2024, each stock issuance used to purchase BTC diluted existing shareholders and also increased the stock acquisition rights available to Gerovich.
Metaplanet fixed the reward pool at 319.464 million shares in August and imposed a five-year lock-up period. Even so, the pool was not restored to the level in place when the company began its bitcoin treasury strategy.
Exercise of rights and current holdings
On Aug. 28, Gerovich exercised 92,000 stock acquisition rights and received 64 million newly issued shares. He now holds a total of 79.5875 million shares, representing about 6.2% of the company’s total outstanding share capital.
Shareholder demands remain
Some shareholders are still calling on Metaplanet to disclose the owners of MMXX and to cancel an additional 273 million-share incentive allocation.
Stock performance
Metaplanet shares fell 7% on Monday and are down 43% for the year. Over the same period, Japan’s Nikkei 225 index has risen 31%.