Metaplanet CEO Addresses Criticism, But Shareholders Say Key Questions Remain

Simon Gerovich, chief executive of Tokyo based bitcoin treasury firm Metaplanet, publicly addressed growing shareholder concerns over the company’s executive compensation structure and his connection to MMXX Ventures, a major shareholder in the firm. In a social media post over the weekend, Gerovich admitted that Metaplanet had failed to adequately explain its Series 10 Stock Acquisition Rights program, while describing himself as a significant but non-controlling shareholder of MMXX’s parent company. He also stated he had no involvement in the firm’s trading decisions.

Compensation Plan Sparks Dilution Concerns

The controversy traces back to a 2022 stock rights program established before Metaplanet adopted its bitcoin-focused strategy, which allocated 20% of the company’s fully diluted shares as an executive reward pool. Once the firm shifted toward buying bitcoin in 2024, every new equity sale meant existing shareholders faced dilution while the CEO’s option entitlement grew larger. In August, the company froze the reward pool at roughly 320 million shares rather than reducing it back to pre-pivot levels, a decision that drew criticism from shareholders demanding full transparency and a rollback of the expanded pool.

Share Sales and Ownership Raise Further Scrutiny

Public records show MMXX sold tens of millions of shares during the company’s 2024 rally, even as Metaplanet was simultaneously raising new equity from investors. While the company has disclosed the CEO’s voting control over MMXX, it has not detailed how much he personally benefited financially from those transactions. Following a recent exercise of stock rights, the CEO’s holdings rose to nearly 80 million shares, roughly 6.2% of the company, with his and MMXX’s combined stake now exceeding 27% of fully diluted shares according to shareholder analysis.

Stock Performance Adds Pressure

Metaplanet’s share price surged dramatically after its 2024 bitcoin strategy launch but has since fallen more than 80% from its mid-2025 peak, dropping further this week amid ongoing scrutiny. The stock has underperformed both bitcoin and Japan’s benchmark index this year, as well as rival bitcoin treasury companies that have posted stronger gains over the same period.