Metaplanet Stock Drops 9.9% After Board Caps 319M Share Option Pool and CEO Converts Vested Third

Metaplanet stock (MTPLF) fell 9.96% on Tuesday to close at ¥244 following investor backlash. Metaplanet told shareholders that the formula behind its Series 10 insider option pool “amplified the dilution borne by existing shareholders.” Rather than resetting the pool to its original size, the board fixed the cap at 319.46 million Metaplanet shares. The option plan started in December 2022 when the company operated as Red Planet Japan, granting seven employees rights tied to 20% of fully diluted shares.

When Metaplanet adopted a Bitcoin (BTC-USD) strategy in April 2024, it issued new stock to buy digital coins. The total share count grew from 153.9 million to 1.35 billion over two years, causing the floating 20% option pool to grow alongside every stock sale.

Metaplanet’s CEO Coverted His Vested Third of the Rights

Ten days after the board capped the pool, Chief Executive Officer Simon Gerovich converted his vested third of the rights. Gerovich paid ¥640 million ($4.16 million) to convert 92,000 rights into 64.03 million shares. Those converted shares carried a market value near ¥15.6 billion ($101.3 million) at recent price levels.

The conversion raised Gerovich’s direct personal stake to 6.2%. Under the August agreement, all shares converted from the pool face a mandatory five-year sales lockup that runs until August 17, 2031. Some long-time investors argue that insider options expanded fairly because Bitcoin holdings per share grew 43-fold over the same timeline.

Metaplanet’s Market Cap Trails Its Bitcoin Treasury Holdings

Metaplanet now holds 43,000 Bitcoins, placing it among the top corporate holders of the asset. At current market prices near $78,533 per coin, those holdings carry a total value of $3.4 billion. However, Metaplanet’s total stock market value sits lower at roughly $2 billion.

Traders should take a look at the gap between Metaplanet’s market value and total Bitcoin holdings. While Metaplanet’s management pitched preferred shares to buy Bicoins without expanding common stock, investors keep demanding clearer terms on remaining insider option rights.

Is Metaplanet a Good Stock to Buy?

There is limited Wall Street coverage on Metaplanet’s stock (MTPLF). The stock has a Moderate Buy consensus rating on based on one lone Buy rating assigned in the past three months, as indicated by the graphic below. The average 12-month MTPLF price target of $2.80 per share implies 72.8% upside potential. (See MTPLF stock forecast)