Metaplanet moves to cut executive shares by 41%

• BTC-USD

This episode of “The Daily Wolf with Scott Melker” discusses Metaplanet’s plan to cut executive share rights by 41% and whether investors might forgive the dilution.

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It came out that effectively every time Metaplanet diluted their shareholders to buy Bitcoin, they were also diluting them to pay the executives because it was a fixed 20% pool that continued to rise with the diluted shares.

Tons of pushback against Metaplanet. Metaplanet stock crashed and left many wondering what the hell will Metaplanet do about this? Will Metaplanet makes 41% executive reward pool cut?

Will shareholders forgive the dilution? That’s me in the picture right there.

Right? Uh, I don’t know if they’ll forgive the dilution. It’s a valid question.

But what they’ve done here is they’ve reduced potential shares under their series 10 rights by 41% from 319.5 million to 188.2 milli million, right?

So basically their CEO who uh a lot of people were saying had some kind of conflicting interest, obviously was overpaying and rewarding themselves. CEO Simon Garovich says the change eliminates more than 221, excuse me, 220 million of potential warrant value

and raises Bitcoin per diluted share by approximately 8.8%. So they’re not rolling this thing entirely back, but they are rolling it back significantly.

It seems that they’re trying to thread the needle over uh still getting paid and doing enough for shareholders not to keep selling off their stock.

But the words they used here are the most interesting to me. Bitcoin per diluted share.

So we’ve looked at metrics like Bitcoin per share, MNAV, all these new terms that we’ve basically come up with for treasury companies. Well, we have a new one that’s going to hit the dictionary, Bitcoin per diluted share.

So maybe that is going to become the metric moving forward by which we value Bitcoin Treasury companies. But it’s clear here that total Bitcoin holdings can rise,

while each shareholder’s claim on that Bitcoin barely improves because there are other mechanics behind the scenes. So now Bitcoin per diluted share is going to be the number that matters.

Now, Metaplanet shareholders uh feared losing part of their ownership, and rightfully so.

Source: finance.yahoo.com