The Crypto News

TLDR of Gerovich’s letter: The CEO acknowledges shareholder criticism of Metaplanet’s old management options (Series 10) and governance. In two years the company went from a small, struggling hotel operator to a large international Bitcoin treasury company. The 2023 incentive structure no longer fits. What they are doing now (the board decided; Gerovich recused himself because he holds these options): 1. Cancel 41% of the potential option shares. The conversion ratio drops from 696 to 410 shares per warrant — the level just before the September 2025 international offering. He says this extinguishes over $220 million of warrant value and lifts Bitcoin per fully diluted share by about 8.8%. 2. Delay exercise of unvested warrants to 2029, 2030 and 2031. The lock-up through August 2031 stays in place. 3. Scrap the plan to move 20% of the warrants into a new employee incentive pool. Those warrants are cancelled as part of the 41%. A new compensation plan will be designed with an external consultant. He argues the options were needed in 2023: near-bankrupt company, little cash pay, the team bought the warrants with their own money and took real downside risk. Now that the company has scaled, compensation and governance have to mature with it. He also promises a stronger board (9 of 10 directors independent), more internal controls, and better disclosure in both English and Japanese. He mentions the pending controlling stake in Nasdaq-listed Super League Enterprise. In short: he admits the communication fell short, cuts a large slice of the disputed options, and says governance and pay will become more institutional.