Metaplanet Freezes 319 Million Share Pool After Dilution Warning

Metaplanet recently told shareholders that a specific mechanism inside its insider share pool made stock dilution much worse. Instead of reversing the setup, the company board decided to freeze the pool at 319.5 million shares. The problem started back in 2023 when the company introduced a rescue plan featuring options that always equalled twenty percent of every share the firm could issue.

When Metaplanet shifted focus to Bitcoin in April 2024 and began issuing new stock to buy coins, the share count exploded from 153.9 million to 1.35 billion in just two years. Because of the original rules, every new stock sale automatically enlarged the insider pool. Just ten days after freezing the pool, the chief executive converted his vested third of the options, pushing his personal stake to 6.2 percent.

The market reacted negatively to the news, sending Metaplanet stock down 9.96 percent on Tuesday to 244 yen. Some shareholders and analysts point out that the company treasury holds substantial Bitcoin value that outpaces the total market capitalization of the firm. Traders will now watch closely to see how the company manages its massive coin holdings alongside ongoing shareholder concerns about supply dilution.