Metaplanet cuts Series 10 stock pool by 41%, plans Hong Kong subsidiary

Metaplanet CEO Simon Gerovich said the Japanese Bitcoin treasury company will further amend its Series 10 stock acquisition rights amid shareholder backlash over dilution concerns.

Metaplanet will reduce the number of potential shares underlying the rights by 131.3 million, from 319.464 million to 188.19 million, by resetting the conversion ratio from 1:696 to 1:410, the level before its September 2025 international share offering, Gerovich announced in a Friday X post.

Shares already delivered through prior exercises will not be returned or canceled. The reduction applies to the number available through future exercises.

The change will extinguish more than $220 million in warrant value and increase the company’s Bitcoin per fully diluted share by about 8.8%, according to Gerovich.

Metaplanet will withdraw its plans to transfer up to 90,000 rights to a long-term officer and employee incentive vehicle and develop a new compensation program with a leading global compensation consultant. Under the amended terms, all unvested rights will face additional exercise restrictions, with one-third becoming exercisable in each of 2029, 2030 and 2031.

The change follows shareholder criticism of the option pool’s expansion from 46 million shares to 319.5 million. Metaplanet said it fixed the pool at 319.5 million shares on Aug. 18, but some shareholders called on it to cancel the 273 million additional potential shares created by the expansion.