Odaily Planet Daily reports that Metaplanet CEO Simon Gerovich posted that he is an important but non-controlling shareholder of MMXX’s parent company and does not participate in its transaction decisions. He acknowledged that the company failed to adequately explain the 10th series of new share subscription rights incentive plan and MMXX’s corporate structure. The incentive plan, established in December 2022, allocated a pool equivalent to 20% of Metaplanet’s fully diluted share capital. After Metaplanet shifted to a Bitcoin treasury strategy, each stock issuance to purchase Bitcoin diluted existing shareholders while expanding the number of subscription rights available to Gerovich. The company fixed the incentive pool at 319.464 million shares in August and set a five-year lock-up period, but did not restore the pool size to the level it was at when the Bitcoin strategy was implemented.
On August 28, Gerovich exercised 92,000 warrants and received 64 million new shares, bringing his total holdings to 79.5875 million shares, approximately 6.2% of the company’s total outstanding shares. Some shareholders continue to demand disclosure of MMXX’s owners and the cancellation of the additional 273 million share incentive allocation. Metaplanet’s stock fell 7% on Monday, down 43% year-to-date, while the Nikkei 225 index rose 31% over the same period.