Shareholder dissatisfaction with Metaplanet’s 10th executive stock option pool is continuing, according to ChainCatcher.
The Japan-based bitcoin treasury company originally set the pool at 20% of fully diluted share capital, with the size designed to expand automatically as the company issued new shares to increase its bitcoin holdings. Some shareholders have asked the company to cancel 273 million additional shares created through the revised structure and to improve transparency around future decisions.
Freeze did not end dilution concerns
Metaplanet froze the option pool at 319.5 million shares on Aug. 18. Critics said that step amplified dilution for existing shareholders because the pool had already grown from 46 million shares to 319.5 million.
In its Aug. 18 announcement, the company acknowledged that expanding the option pool had 「amplified the dilution borne by existing shareholders」.
Management response and outside proposal
Metaplanet CEO Simon Gerovich said he would reexamine the company’s governance and compensation policies. He also addressed his relationship with shareholder MMXX Ventures, saying he is only a significant non-controlling shareholder in MMXX’s parent company and does not hold an executive position there.
On Aug. 31, Metaplanet disclosed that Gerovich had exercised 92,000 shares from the option pool.
Matthew Sigel, head of digital assets research at VanEck, proposed freezing any further exercises under the 10th option pool, allowing holders to voluntarily give up excess rights, and replacing the pool with a five-year incentive plan approved by shareholders and primarily linked to fully diluted bitcoin holdings per share.
Share price move
As of Wednesday’s close in Tokyo, Metaplanet shares finished higher, narrowing their five-day decline to about 16.3%.