Metaplanet CEO breaks silence but shareholders say the hard questions remain unanswered

In a post on X on Sunday, Gerovich acknowledged that Tokyo-based Metaplanet "had not done a good enough job" of explaining the equity remuneration arrangement known as Series 10 Stock Acquisition Rights. He also described himself as a "significant but non-majority shareholder" of MMXX's parent company and said he played no role in the firm’s trading decisions while Metaplanet investors called for greater transparency.

The controversy dates back to December 2022, before Metaplanet adopted its bitcoin treasury strategy, when the company established the stock rights plan. Instead of granting executives a fixed number of shares, it set a reward pool of 20% of Metaplanet's fully diluted share capital.

After the company’s pivot to buying bitcoin in April 2024, that meant every time Metaplanet sold new equity to add to its holdings, existing shareholders were diluted, while Gerovich’s option entitlement increased.