Metaplanet froze its executive share pool after it grew 595% through shareholder dilution

So Metaplanet performed exceptionally well, it was one of the darlings of the treasury boom. The problem here is that they have an executive pool of shares that was pegged not at a fixed amount but at 20% of the company's fully diluted share capital. If you understand how treasury companies work, they effectively dilute shareholders by creating more shares and selling those to buy Bitcoin, which works exceptionally well when mNAV is high and increases Bitcoin per share. Well they pegged it at 20%. So what happens is every time that they made new shares to dilute shareholders to buy Bitcoin, they were also effectively diluting shareholders to pad their own pockets with the shares in that executive pool that rose with it. They said in their own filing that the mechanism amplifies the dilution borne by existing shareholders. They froze it in August because they realized it was so bad at 319.464 million executive shares. That pool started at 46.5 million shares. The pool of executive shares grew by approximately 273.5 million shares, which is nearly seven times its original size, an increase of roughly 595%.

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