Metaplanet’s executive stock pool sparks shareholder backlash as CEO addresses MMXX ties

Japanese Bitcoin treasury company Metaplanet’s executive stock pool continues to draw shareholder backlash over stock dilution concerns. 

Multiple shareholders objected across social media to Metaplanet’s 10th Series executive option pool, which was designed as 20% of fully diluted shares and automatically expanded as the company issued new shares to fund its Bitcoin (BTC) accumulation.

Pseudonymous Metaplanet shareholder Bitcoin Pharaoh claimed that Bailey personally benefited from Metaplanet’s stock options and received 300,000 options at a 105 Japanese yen strike price, when the stock was trading at 510 yen, as compensation for his role as a strategic board advisor at Metaplanet.

Metaplanet CEO addresses MMXX ties 

Metaplanet CEO Simon Gerovich pledged to review the company’s governance and compensation policies and sought to distance himself from Metaplanet shareholder MMXX Ventures, explaining that he is a significant but non-majority shareholder in MMXX’s parent company and holds no executive role. 

On Aug. 31, Metaplanet revealed that its CEO exercised 92,000 shares from the 10th Series executive options pool.

VanEck’s head of digital asset research, Matthew Sigel, said that Metaplanet should “freeze” further exercise rights from the 10th Series option pool, have holders voluntarily surrender the excess rights and weigh additional options related to the shares that have already been exercised.

In an Aug. 18 notice, Metaplanet acknowledged that the decision to expand the share pool “amplifies the dilution borne by existing shareholders.” 

Cointelegraph has request comment from Metaplanet on whether it would consider freezing the remaining shares in the executive pool.

Metaplanet stock price, five-day chart. Source: Yahoo Finance

Metaplanet’s shares closed up in Wednesday’s Tokyo trading, trimming their five-day decline to roughly 16.3%, according to Yahoo Finance.