David Bailey

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Metaplanet
2026-09-09 10:20:25

David Bailey Defends Metaplanet’s 20% Executive Option Pool as Strive CEO Pushes Back

David Bailey, chairman and CEO of Nakamoto, defended Metaplanet’s executive option structure in a series of posts on X, arguing that allocating 20% of a company’s cap table to its team over five years is not extreme and even looked low to him. Bailey, who said he has held the stock since Metaplanet’s first bitcoin purchase, tied his defense to the company’s market record, saying Metaplanet had been the world’s best-performing equity for nearly two years, remained up 1,300% from inception even after bitcoin’s decline, increased bitcoin per share by more than 40x, and built the second-largest corporate bitcoin position. The dispute centers on Metaplanet’s Series 10 stock acquisition rights, adopted in December 2022 before the company’s bitcoin pivot. Because the executive pool was set as a share of fully diluted stock rather than a fixed number of shares, each equity raise used to fund bitcoin purchases increased insiders’ claim while diluting existing shareholders. The pool expanded from about 46 million shares to roughly 319 million. Metaplanet later acknowledged in an amendment notice that the provision amplified dilution and made the diluted share count difficult to determine. The board removed the mechanism on Aug. 18 and fixed the pool at 319.46 million potential shares, locked up until August 2031, but did not unwind about 273 million shares critics want canceled. Bailey’s comparison to Strive drew a response from Strive CEO Matt Cole, who said the often-cited 270.5 million pre-split Class B shares at Strive were merger consideration for all pre-merger equityholders, not management compensation. He also said Vivek Ramaswamy is neither an officer nor a director and that no Strive award automatically expands with new issuance.

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