Key facts
- Metaplanet will reduce potential shares from 319.46 million to 188.19 million.
- The change will extinguish over $220 million in warrant value.
- Metaplanet plans to establish a Hong Kong subsidiary for trading in Bitcoin, equities, and credit products.
- The subsidiary, Metaplanet Asset Management Asia Limited, will have $1 million in initial capital.
- Metaplanet CEO Simon Gerovich recused himself from board deliberations on the adjustment due to his Series 10 holdings.
Metaplanet is significantly reducing the number of potential shares available through its Series 10 stock acquisition rights, a move aimed at appeasing shareholders concerned about dilution. The company announced it would cut 131.3 million potential shares, lowering the total from 319.46 million to 188.19 million by adjusting the conversion ratio. This action is expected to extinguish over $220 million in warrant value and increase the Bitcoin held per fully diluted share by approximately 8.8%. CEO Simon Gerovich stated he recused himself from board discussions regarding the adjustment due to his own holdings as a Series 10 holder. The company is also withdrawing plans for a long-term officer and employee incentive vehicle and will implement new exercise restrictions on unvested rights. These changes follow criticism from shareholders regarding the expansion of the option pool. In parallel, Metaplanet announced its intention to establish Metaplanet Asset Management Asia Limited in Hong Kong with $1 million in initial capital, which will focus on trading Bitcoin, equities, and credit products during Asian market hours as part of its broader 'Project Nova' initiative.