Metaplanet CEO Simon Gerovich stated on September 6, 2026, that his company failed to provide adequate explanation regarding its Series 10 executive stock option program. The admission also addressed the lack of details regarding the company’s relationship structure with MMXX Ventures, one of its major shareholders.
Gerovich clarified his role by describing himself as a significant but non-majority shareholder in MMXX’s parent company. He emphasized that he is not involved in and does not interfere with the entity’s investment decisions or trading activities.
The Ever-Expanding Option Mechanism
The Series 10 option program was designed with an adjustment mechanism that maintains the reward portion at around 20% of the fully diluted outstanding shares. This allocation rule has one direct effect: every time Metaplanet issues new shares, the executive option pool automatically expands.
The company capped the option program at 319,464,000 potential shares as of August 18. However, shareholder groups view the amendment as merely halting future expansion without reversing the option pool’s already inflated growth.
On August 28, Gerovich exercised 92,000 Series 10 share acquisition rights. This move created 64,032,000 new shares and boosted his direct shareholding from 15,555,500 to 79,587,500 shares. All acquired shares are subject to a five-year lock-up period until August 17, 2031.
Where Did the Hundreds of Millions of Potential Shares Come From?
Metaplanet began its Bitcoin treasury strategy in April 2024. To fund BTC purchases, the company relied on issuing shares, warrants, and other financial instruments. Because every new share expanded the Series 10 pool, the Bitcoin accumulation strategy directly led to an increase in potential executive options.
A shareholder under the alias Bitcoin Pharaoh calculated that 273 million of the total potential shares resulted from adjustments made after the company formalized its Bitcoin treasury strategy. To date, Metaplanet has not officially confirmed the accuracy of this shareholder’s calculations.
The corporate strategy of issuing shares to buy Bitcoin has now raised prolonged corporate governance concerns. When such fundraising automatically enlarges insider ownership without prior comprehensive explanation, investors need more than just a five-year asset lock-up pledge. Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
