Metaplanet slashes executive share pool by 41% and delays option exercise

Executive compensation plan revised

Metaplanet announced on Thursday that it will cut the number of potential shares linked to its Series 10 stock acquisition rights by 41 %. The pool will shrink from about 319.5 million shares to 188.2 million shares after shareholder criticism of the plan.

Key numbers

• Potential shares reduced by 41 % (319.5 M → 188.2 M).
• Conversion ratio lowered from 696 to 410 shares per option.
• Warrant value loss exceeds $220 M.
• Bitcoin per diluted share rises roughly 8.8 %.
• Option exercise spread across 2029‑2031, one‑third each year.
• Shares from the plan cannot be sold until August 2031.

Company statement

CEO Simon Gerovich said the changes remove more than $220 M of warrant value and increase the amount of bitcoin held per diluted share by about 8.8 %. The company chose the new conversion ratio because earlier stock sales generated more bitcoin value per share, while later capital raises were less effective. Gerovich noted that later issuances gave Series 10 holders “disproportionate value” compared with existing shareholders.

Market reaction

Metaplanet’s stock fell about 17 % over two trading sessions after the initial response to the controversy. Year‑to‑date the shares are down more than 38 %, underperforming bitcoin (≈10 % down) and Strategy (≈13 % down).

What is confirmed

The reduction in potential shares, the new conversion ratio, the delayed exercise schedule, the cancellation of the employee warrant pool, and the CEO’s comments are all confirmed by the company’s announcement.

Why it matters

The cut reduces the number of new shares that could dilute existing shareholders and increases the amount of bitcoin held per share, which may affect the company’s valuation and the value of its bitcoin treasury.

What happens next

Metaplanet plans to develop a separate compensation program for employees. The remaining Series 10 options will become exercisable in 2029, 2030, and 2031, with shares locked until August 2031.

Sources

• The Block