Metaplanet Stock Plummets as Investors Unconvinced by CEO's Public Reply

Metaplanet's stock has continued to fall after CEO Simon Gerovich attempted to address investor concerns in a public statement. The Tokyo-listed Bitcoin treasury company dropped nearly 10 percent on Tuesday, following a 7.5 percent decline the previous day.

The selling was sparked by Gerovich's admission that the company had not clearly explained its structure, which investors saw as incomplete rather than reassuring.

At the center of the controversy is Metaplanet's Series 10 stock acquisition rights plan, which dates back to December 2022. Instead of awarding a fixed number of shares, the plan reserved a pool equal to 20 percent of fully diluted capital.

The pool expanded to over 319 million potential shares after the company shifted its focus to buying Bitcoin in April 2024. Ordinary holders were diluted while potential insider awards grew with every issuance.

Gerovich exercised 92,000 units and received 64,032,000 shares just ten days after freezing the pool at its current size of 319,464,000 potential shares. His direct holding now stands at around 79,587,500 shares, or roughly 6.2 percent.

Investors have also raised concerns about MMXX Ventures, a disclosed Metaplanet shareholder, and how Gerovich indirectly benefited from its stock sales during the 2024 rally.