Metaplanet Shrinks Stock Pool by 41%, Boosts Bitcoin Per Share
Metaplanet has reduced its Series 10 stock pool by 41% in response to shareholder criticism over dilution concerns. The Japanese Bitcoin treasury company will reset the conversion ratio from 1:696 to 1:410, effectively extinguishing more than $220 million in warrant value and increasing the company's Bitcoin per fully diluted share by about 8.8%. The reduction applies only to future exercises of the rights.
The change follows criticism of the option pool's expansion from 46 million shares to 319.5 million. Metaplanet acknowledged that expanding the pool 'amplifies the dilution borne by existing shareholders' when it fixed the pool at 319.5 million shares on August 18.
Metaplanet CEO Simon Gerovich recused himself from the board's deliberations and vote on the adjustment because he is a Series 10 holder.
The company also announced plans to establish Metaplanet Asset Management Asia Limited in Hong Kong with $1 million in initial capital later in September. The subsidiary will conduct trading in Bitcoin, equities, and credit products during Asian market hours as part of the 'Project Nova' initiative to build a Bitcoin-centered platform.