Metaplanet Cuts Stock Pool by 41% and Announces Hong Kong Expansion

Metaplanet reduces stock pool to address shareholder concerns

Metaplanet, a Japanese company that holds Bitcoin as a treasury asset, has announced it will reduce its Series 10 stock acquisition rights by 41%. This decision comes after shareholders expressed concerns about dilution, which occurs when a company issues more shares and reduces the ownership percentage of existing investors. The company also announced plans to launch a new subsidiary in Hong Kong to expand its financial services.

The company will cut the number of potential shares from 319.464 million to 188.19 million. This adjustment will be made by resetting the conversion ratio to 1:410, returning it to the level seen before a 2025 share offering. CEO Simon Gerovich stated that this move will extinguish more than $220 million in warrant value and increase the company’s Bitcoin per share by about 8.8%.

Key figures from the announcement

• 41% reduction in the Series 10 stock acquisition pool.
• 131.3 million potential shares will be removed from future exercises.
• $1 million in initial capital for the new Hong Kong subsidiary.
• 15% decline in Metaplanet share price over the last five trading days.

CEO addresses management and shareholder alignment

Metaplanet CEO Simon Gerovich announced the changes on social media, noting that the company had listened to shareholder criticism regarding the expansion of the option pool. He explained that he recused himself from the board's vote on the adjustment because he is a holder of Series 10 rights. To further align management with shareholders, Metaplanet is withdrawing plans to transfer rights to a long-term incentive vehicle and will instead work with a global consultant to develop a new compensation program.

Under the new terms, any unvested rights will face stricter rules. One-third of these rights will become available for exercise each year starting in 2029, through 2031. This change follows an earlier acknowledgement by the company that the previous expansion of the pool had increased the dilution burden on existing shareholders.

Metaplanet expands to Hong Kong market

As part of its "Project Nova" strategy, Metaplanet plans to establish Metaplanet Asset Management Asia Limited in Hong Kong later this month. The new subsidiary will focus on trading Bitcoin, equities, and credit products during Asian market hours. The goal of Project Nova is to create a financial platform centered on Bitcoin that includes asset management and capital markets services.

This move follows the company's June agreement to acquire Siiibo Securities for 2.1 billion yen ($13.1 million) to build a dedicated securities arm. Matthew Sigel, head of digital asset research at VanEck, called the recent stock pool adjustment a meaningful concession that improves the connection between management and investors.

What is confirmed

The reduction in the stock pool applies only to future exercises of stock rights. Shares that have already been delivered through prior exercises will not be canceled or returned. The company has officially confirmed the new conversion ratio of 1:410 and the planned $1 million capital for the Hong Kong entity. Metaplanet shares closed down 3.8% on Friday following the news.

Sources

• Cointelegraph
• Official Disclosure via TDnet
• Yahoo Finance