The Strategy of Japan: Why bitcoin treasury Metaplanet stock is sinking

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Metaplanet shares fall nearly 10% after option pool review and CEO statement. Tokyo-listed Bitcoin Treasury firm details option pool cap, five-year lockup and CEO share exercise after investor questions. So,

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to break down for you what happened here. First of all, if you don't know, Metaplanet was effectively the strategy of Japan. And when Metaplanet launched as one of the first Bitcoin Treasury companies,

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it was very advantageous for Japanese investors to buy this instead of buying Bitcoin because of a massive tax advantage in the way that Bitcoin was treated. Much higher capital gains for buying and selling Bitcoin than for buying and selling a security. So Metaplanet

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performed exceptionally well. It was one of the darlings of the Treasury boom. Well, now, they got some splaining to do.

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The problem here is that they have a executive pool of shares that was pegged not at a fixed amount, but at 20% of the company's fully diluted share capital. So if you understand how treasury companies work, they effectively dilute shareholders by creating more shares and selling those to buy Bitcoin, which works exceptionally well when MNAV is high and increases Bitcoin per share. Well, they