Metaplanet revises its capital allocation policy, planning to invest 10% to 15% of its assets into strategic investments

Japan's investment and Bitcoin treasury company Metaplanet announced a revised capital allocation policy, proposing to invest 10% to 15% of total assets into strategic investments, including mergers and acquisitions and income-generating assets. It also launched a net interest income strategy to allocate capital to revenue-generating assets, using net interest income to support Bitcoin accumulation and dividend payments. Bitcoin remains its core treasury reserve asset, accounting for 85% to 90% of total assets. The company stated that this move aims to enhance financing capabilities and credit quality to increase the Bitcoin holdings per share.

At the time of this financing model's introduction, shareholders expressed concerns about Metaplanet's governance and complex capital structure. The company released five corrected securities filing documents last Friday, clarifying that CEO Simon Gerovich does not hold a majority voting power in Metaplanet shareholder MMX Ventures. Anonymous shareholder Bitcoin Pharaoh subsequently called for the company to clearly disclose the owner of MMX Ventures, explain the 23.8% shares registered as indirectly held by Gerovich, and reveal the identities of two unnamed executives who exercised 18.8 million shares from the 10th stock option pool.

In early September this year, management faced criticism from shareholders for expanding the 10th executive stock option pool from 46 million shares to nearly 319.5 million shares. On September 11, Metaplanet proposed to reduce this option pool by 41%, decreasing the potential shares by 13.13 million to 188.19 million shares, and resetting the conversion ratio from 1:696 to 1:410.