- Metaplanet is adopting a net interest income strategy, keeping Bitcoin as 85%-90% of total assets while allocating 10%-15% to income-generating assets and M&A.
- The company issued corrected securities filings clarifying CEO Simon Gerovich does not hold majority voting rights in shareholder MMX Ventures.
- Facing shareholder criticism, Metaplanet cut its Series 10 stock option pool by 131.3 million shares, extinguishing more than $220 million in warrant value.
- Shares trade at 0.80x Bitcoin NAV, below the critical mNAV ratio of 1.
Japanese investment firm Metaplanet introduced a net interest income strategy on Monday, planning to invest capital in income-generating assets and use net interest to fuel Bitcoin accumulation and dividend payments. The revised capital allocation policy allows 10% to 15% of assets to move into strategic investments, while Bitcoin remains the core treasury reserve asset at 85% to 90%, according to a company notice.
The move follows shareholder concerns about governance and a complex capital structure. On Friday, Metaplanet issued five corrected securities filings clarifying that CEO Simon Gerovich does not hold majority voting rights in MMX Ventures.
Pseudonymous shareholder Bitcoin Pharaoh urged the company to name MMX Ventures’ owner and clarify the 23.8% stake listed as indirectly held by Gerovich. “Either the indirect holding is his, in which case the deleted sentence was closer to the truth, or it is not, in which case the correction is incomplete,” he wrote in an X post.
Metaplanet’s share price is up more than 5.6% over the past five trading days, trimming some of the now-26% year-to-date decline, according to Yahoo Finance. In September, management drew criticism for expanding the Series 10 executive stock option pool to 319.5 million shares.
On Sept. 11, Metaplanet said it would cut potential shares by 131.3 million by reducing the conversion ratio, extinguishing over $220 million in warrant value. The change increased Bitcoin per fully diluted share by about 8.8%, according to Gerovich.
Asset manager VanEck argued that much of the dilution has already occurred despite the cut, urging Metaplanet to reverse the 273 million additional shares, according to a Sept. 18 report. On Aug. 31, Metaplanet disclosed that Gerovich exercised rights to acquire 92,000 shares under the Series 10 pool.
The company acknowledged on Aug. 18 that expanding the pool “amplifies the dilution borne by existing shareholders.” Almost a year ago, Metaplanet’s enterprise value fell below the value of its Bitcoin holdings.
At Monday’s close in Tokyo, Metaplanet trades at 0.80x its Bitcoin NAV, meaning investors pay $0.80 for every $1 of Bitcoin it owns, according to Mnav.com.
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