Metaplanet Shares Slide as Option Dilution Concerns Grow

Metaplanet, Japan’s listed Bitcoin treasury company, is facing growing shareholder criticism over its Series 10 stock-option scheme, governance and potential equity dilution. CEO Simon Gerovich acknowledged that the company had not clearly explained its compensation, financing and governance decisions. The options, issued mainly to directors, executives and employees at an exercise price of ¥10 per share, originally allowed the potential share issuance to expand alongside future capital raisings. This anti-dilution structure could have increased the burden on ordinary shareholders. Metaplanet amended the terms on 18 August, capping the remaining potential issuance at about 319 million shares and introducing long-term lock-ups. Concerns continued after the company disclosed on 31 August that Gerovich had exercised 92,000 options. He received about 64.03 million shares for approximately ¥640 million. The shares are subject to restrictions and cannot immediately be sold in the market. Gerovich also said he is associated with MMXX Ventures, which holds about 42.47 million Metaplanet shares, but has no operational role there. Metaplanet shares fell 7.51% on Monday and dropped a further 5.5% intraday on Tuesday to about ¥256. From the 1 September close of ¥326, the stock had declined roughly 21%. For traders, the key test is whether Metaplanet’s Bitcoin purchases increase BTC exposure per share faster than new equity and option issuance dilute it. Continued governance concerns could keep Metaplanet shares volatile, even if total BTC holdings rise.