Metaplanet CEO Simon Gerovich acknowledged on Sept. 6 that the company had not adequately explained its Series 10 executive option plan or the structure connecting him to major shareholder MMXX Ventures.
Summary
- Metaplanet fixed its Series 10 option pool at 319,464,000 potential shares after removing automatic adjustments.
- Simon Gerovich exercised 92,000 rights, receiving 64,032,000 shares subject to a five-year transfer restriction afterward.
- Gerovich said he owns a non-majority interest in MMXX’s parent and makes no trading decisions.
- Shareholders continue requesting MMXX ownership details and cancellation of 273 million additional reward-pool shares publicly.
Gerovich said he is a “significant but non-majority shareholder” in MMXX’s parent company. He denied involvement in MMXX’s investment or trading decisions and said Metaplanet would provide clearer explanations of its corporate structure.
The statement followed renewed criticism of a compensation program that grew as Metaplanet issued shares to finance its Bitcoin treasury strategy. Metaplanet capped the plan at 319,464,000 potential shares on Aug. 18, but shareholders argue that the amendment stopped future expansion without addressing growth that had already occurred.
Gerovich exercised 92,000 Series 10 stock acquisition rights on Aug. 28. The exercise created 64,032,000 shares and increased his direct ownership to 79,587,500 shares, according to Metaplanet’s Aug. 31 disclosure.
The filing confirmed the exercise and resulting ownership. Separate claims about Gerovich’s total economic exposure through MMXX, however, remain shareholder calculations rather than figures confirmed by Metaplanet.
Metaplanet’s option pool expanded with its share count
Metaplanet established the Series 10 Stock Acquisition Rights program before adopting its Bitcoin treasury strategy. Its board approved the issuance terms on Dec. 28, 2022, and shareholders approved them at an extraordinary meeting on Feb. 7, 2023.
The company issued 460,000 rights to seven officers and employees. Each right initially represented 100 shares, subject to adjustments. Recipients paid ¥18 per right, while the exercise price was ¥10 per share.
The program did not grant a fixed number of shares. Its adjustment mechanism maintained the reward pool at roughly 20% of Metaplanet’s fully diluted share count. That structure allowed the number of potential reward shares to grow when the company issued additional equity.
Metaplanet began its Bitcoin treasury strategy in April 2024. It subsequently relied on shares, warrants and other financing instruments to fund purchases. New issuance diluted existing investors while also expanding the number of shares linked to the Series 10 rights.
In its Aug. 18 filing, Metaplanet acknowledged that the original adjustment mechanism had produced an unintended outcome.
The company said the mechanism “amplifies the dilution borne by existing shareholders.”
The board removed the floating adjustment and fixed the remaining potential issuance at 319,464,000 shares. The amendment prevents future capital raises from automatically enlarging the pool.
However, the board did not restore the pool to its size when Metaplanet adopted the Bitcoin strategy. Critics say that decision preserved hundreds of millions of potential shares accumulated through the adjustment mechanism.
A shareholder using the name Bitcoin Pharaoh calculated that 273 million of the potential shares resulted from adjustments after the treasury pivot. That figure has circulated broadly, but Metaplanet has not adopted it as an official company calculation.
Gerovich’s 64 million-share exercise raised scrutiny
Metaplanet’s Aug. 31 disclosure said Gerovich exercised 92,000 Series 10 rights effective Aug. 28. The rights converted into 64,032,000 common shares.
The exercise increased his direct holdings from 15,555,500 shares to 79,587,500 shares. Metaplanet placed the newly acquired shares under the five-year lock-up introduced through the Aug. 18 amendment.
That restriction generally prevents the sale or transfer of the shares until Aug. 17, 2031. Metaplanet said the lock-up was intended to align option holders with the company’s long-term performance.
The restriction reduces the prospect of an immediate sale, but it does not cancel the shares or reverse dilution. The 64,032,000 shares became part of the company’s issued equity when Gerovich exercised the rights.
Metaplanet’s Aug. 18 filing showed that Gerovich held 276,000 of the 459,000 unexercised Series 10 rights outstanding as of June 30. Two executive officers held 141,000 rights collectively, while two employees held another 42,000.
One-third of the rights vested on Feb. 8, 2026. The remaining tranches are scheduled to vest on Feb. 8, 2027, and Feb. 8, 2028. The exercise therefore represented only part of Gerovich’s disclosed Series 10 position.
Shareholders have asked why the company froze the enlarged pool instead of recalculating it from April 2024. Some have also requested a replacement incentive plan based on per-share performance, Bitcoin yield or other measurable targets.
Shareholder Ragnar argued that Metaplanet should “cancel the additional 273 million shares,” but the company has not accepted that calculation or proposal.
No filing reviewed for this story indicates that Metaplanet has decided to cancel the remaining rights. The company instead said existing holders intended to transfer part of their rights to a new long-term incentive vehicle involving officers and employees.
The amount, timing and ownership structure of that vehicle have not yet been fully disclosed.
Gerovich denies directing MMXX Ventures trades
MMXX Ventures is a disclosed Metaplanet shareholder. Gerovich said in his Sept. 6 statement that he owns a non-majority stake in its parent company.
He said he does not manage MMXX, make its investment decisions or direct its trading. He also described MMXX as separate from Metaplanet.
Gerovich said: “I have no involvement in its investment or trading decisions.”
That is an attributed denial. Public filings confirm connections between Gerovich and MMXX, but they do not provide a complete breakdown of every beneficial owner or show how proceeds from historical share sales were distributed among the parent company’s investors.
Metaplanet has previously disclosed Gerovich’s voting control in relation to MMXX. However, voting authority, legal ownership and economic benefit are separate questions. A person can influence voting without holding a majority economic interest, while a non-majority owner can still receive part of an entity’s profits.
Shareholder Bitcoin Pharaoh alleged that MMXX sold about 50 million Metaplanet shares during the company’s 2024 rally. The analysis was based on public ownership disclosures, according to its author.
Metaplanet has not publicly confirmed that total in a dedicated response to the current dispute. It also has not published a transaction-by-transaction account showing what portion of any MMXX sale proceeds may have benefited Gerovich.
For that reason, claims about Gerovich’s personal proceeds cannot be presented as established facts. His statement addressed decision-making authority but did not quantify his economic interest or identify the other owners of MMXX’s parent.
Gerovich acknowledged that the company’s previous communication was insufficient.
“We have not done a good enough job of explaining this clearly,” he said.
He promised more communication about the company’s decisions and long-term alignment. The post did not commit Metaplanet to publishing MMXX’s full ownership, cancelling rights or resetting the option pool.
Share-price decline increases pressure for fuller answers
Metaplanet shares traded near ¥255 on Sept. 8, down almost 6% during the Tokyo session, according to Google. The decline followed continued public discussion of the option structure and MMXX relationship.
The stock remains far below its June 2025 peak. Its decline has occurred even as Metaplanet expanded its Bitcoin holdings to 43,000 BTC.
As crypto.news reported when the shares approached a 52-week low, investors were already weighing dilution, Bitcoin valuation losses and the company’s ability to raise capital without weakening per-share value.
Metaplanet’s treasury strategy depends heavily on access to equity markets. Issuing stock can add corporate Bitcoin while reducing each existing shareholder’s percentage ownership. The result for shareholders depends on the issue price, the company’s valuation and how much Bitcoin or other value it creates per diluted share.
The governance dispute adds another concern because the Series 10 plan rewards insiders through the same expanding equity base used to fund Bitcoin purchases. Removing the automatic adjustment prevents that relationship from continuing, but the remaining pool can still produce further dilution as rights vest and are exercised.
The company has also committed 2,100 BTC and $2.5 million to a proposed U.S. Bitcoin treasury platform involving Nasdaq-listed Super League. As previously reported, those coins are expected to remain within Metaplanet’s consolidated group if the transaction closes.
That expansion gives the company a supported U.S. business angle, but it also makes clear governance and capital allocation more important. Shareholders must assess both Metaplanet’s Bitcoin exposure and the securities used to finance its wider strategy.
What happens next
Metaplanet has not announced a special review, independent investigation or vote concerning the Series 10 plan. No verified court or regulatory proceeding tied to the current criticism was found.
The next scheduled vesting date is Feb. 8, 2027. Additional Series 10 rights could become exercisable at that point unless Metaplanet amends, transfers or cancels them beforehand.
Investors are likely to watch for a filing explaining how many rights will move to the proposed employee incentive vehicle. They may also seek the vehicle’s ownership, governance rules, performance conditions and treatment under the five-year lock-up.
The larger unanswered questions concern MMXX. Gerovich has described his ownership and denied directing trades, but Metaplanet has not released a complete beneficial-ownership table for MMXX’s parent or a detailed account of Gerovich’s economic participation in its transactions.
Until the company supplies those details, shareholder estimates should remain clearly labelled as outside analysis. The official record currently confirms the option terms, the 319,464,000-share cap, the lock-up and Gerovich’s 64,032,000-share exercise. It does not settle every question raised about ownership and past economic benefits.
FAQs
What are Metaplanet’s Series 10 rights?
They are paid stock options approved in 2023 for officers and employees. Their original adjustment mechanism kept the potential pool near 20% of fully diluted shares.
How many potential shares remain in the pool?
Metaplanet fixed the pool at 319,464,000 potential shares on Aug. 18, 2026. Subsequent exercises reduce outstanding rights while increasing issued shares.
Can Gerovich immediately sell his new shares?
The 64,032,000 shares are generally subject to a five-year sale and transfer restriction lasting until Aug. 17, 2031.
Does Gerovich own MMXX Ventures?
Gerovich says he is a non-majority shareholder in MMXX’s parent company. Metaplanet has not published a complete ownership breakdown for that parent.
Did Metaplanet answer every shareholder question?
No. The CEO addressed the adjustment mechanism and denied making MMXX trading decisions. Questions remain about MMXX’s ownership, historical proceeds and whether the enlarged option pool will be reduced.
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