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Metaplanet CEO acknowledges lack of clarity on executive equity plan
The company created a Series 10 stock rights pool tied to fully diluted shares, which critics say grew as Metaplanet raised new equity after its bitcoin pivot in April 2024, diluting existing holders.
Metaplanet CEO Simon Gerovich said the company had not done enough to explain its Series 10 Stock Acquisition Rights reward program and the structure of MMXX Ventures, according to CoinDesk.
Gerovich also said he is a significant but non-majority shareholder in MMXX’s parent company and that he has no involvement in MMXX’s trading decisions, while investors pressed for more transparency about who controls the arrangement.
The controversy dates to December 2022, before Metaplanet adopted its bitcoin treasury strategy, when the firm set up a stock rights plan that did not grant executives a fixed number of shares. Instead, it set a reward pool equal to 20% of Metaplanet’s fully diluted share capital, a structure critics say increased insiders’ potential holdings as Metaplanet sold new equity to buy more bitcoin after its April 2024 pivot.
CoinDesk reports that in August Metaplanet abandoned the linked reward-pool increase and froze the number of reward shares at around 320 million, but did not roll back the pool to its pre-bitcoin-pivot level, leaving some shareholders still demanding further changes.
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