Topic
Equity-funded acquisitions using pre-funded warrants struck at nominal prices, diluting existing holders instead of spending cash.
The asset manager paid for the coins with fresh common and preferred stock. Back out the two disclosed percentages and the fully diluted share count grew about 4% in a single week.
Perspective Coverage
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Strategy told followers its market value rose $32 billion in three months. The share price rose 54%. About $6.3 billion of the gain came from selling 61.5 million new shares at an average of $102.
Reality
Metaplanet's board pulled back grant terms that expanded with every equity raise, cutting the potential share pool by about 41 percent and lifting bitcoin per fully diluted share 8.8 percent without buying a coin.
Reality
A 17% two-day selloff got Metaplanet's board to take 131.27 million potential shares out of its contested option pool in four days, and to add a new CFO, a Hong Kong arm and a December capital vote.
Reality
The board froze an option pool that had grown nearly sevenfold to 319 million rights and cut the plan by 41%, a reduction worth about $123m that leaves management with a claim on roughly 13% of the diluted company.
Reality
The fleet cost existing CYPH holders 43,290,042 new shares struck at $0.001. The seller was Winklevoss Treasury Investments, affiliated with the sponsor that seeded the company.
Perspective Coverage
3 publishersReality