Shareholders are protesting the 10th Series executive option pool, which was set at 20% of fully diluted shares and expanded automatically as the company issued new shares to fund Bitcoin accumulation. Investors are demanding the cancellation of 273 million additional shares created by these changes and greater transparency in decision-making.
The pool grew from 46 million to 319.5 million shares, with Metaplanet freezing it at the latter figure on August 18. The company acknowledged that this expansion increased dilution for existing shareholders. On August 31, CEO Simon Gerovich exercised 92,000 shares from this pool.
Controversy surrounds David Bailey, CEO of Bitcoin Magazine, who serves as a strategic board advisor. A shareholder claimed Bailey received 300,000 options at a strike price of ¥105, while the stock was trading at ¥510. It is alleged that management took one out of every four coins purchased with shareholder funds.
CEO Simon Gerovich has pledged to review governance and compensation policies. He also clarified his relationship with MMXX Ventures, stating he is a significant but non-majority shareholder in the parent company and holds no executive position there. VanEck's Matthew Sigel suggested replacing the pool with a shareholder-approved incentive plan tied to BTC per share.
