Japan’s Bitcoin treasury-focused firm Metaplanet is facing renewed scrutiny from shareholders after controversy erupted around the company’s “10th Series” executive option pool and the dilution mechanics tied to its ongoing BTC accumulation.

The dispute centers on how the pool was structured—set at 20% of fully diluted shares and designed to expand automatically as Metaplanet issued new shares to finance additional Bitcoin buys—prompting critics to argue that management’s incentives increased at the expense of existing holders.

Key takeaways

• Shareholders have challenged Metaplanet’s 10th Series executive option pool, arguing its built-in expansion led to significant dilution.
• Metaplanet says the pool was frozen at 319.5 million shares on Aug. 18, but critics claim the earlier growth still magnified dilution for existing shareholders.
• Bitcoin Magazine CEO David Bailey defended the incentive design in posts on X, while pseudonymous shareholder “Bitcoin Pharaoh” alleged personal benefit from options and raised concerns about fairness.
• Metaplanet CEO Simon Gerovich said the company would review governance and compensation policies, after an update that the CEO exercised 92,000 shares from the 10th Series pool.
• Industry commentator Matthew Sigel said further exercise rights from the 10th Series should be frozen and replaced with a shareholder-approved plan tied primarily to BTC per fully diluted share.

Why the 10th Series option pool became contentious

Backlash intensified as multiple Metaplanet shareholders questioned the design and outcomes of the company’s 10th Series executive option pool. According to the dispute described by shareholders on X, the pool was established to represent 20% of fully diluted shares and to automatically expand as new shares were issued to fund Metaplanet’s Bitcoin accumulation.

Critics point to the scale of the growth. One shareholder claim summarized the change as the pool expanding from roughly 46 million shares to 319.5 million shares. While that characterization reflects the objections raised in social posts, Metaplanet’s response provides the key operational detail: the company said it froze the pool at 319.5 million shares on Aug. 18.

In a Tuesday X post, Bitcoin Magazine CEO David Bailey defended the model, arguing that allowing management a 20% slice of the cap table over five years “isn’t some crazy number.” Bailey also wrote that he has been invested in Metaplanet “since day zero,” framing his support as long-term alignment rather than short-term compensation.

Responses from Metaplanet and shareholder pressure for transparency

Following the public debate, some shareholders said they are asking Metaplanet to cancel additional shares created from the 10th Series changes and to provide more transparency around future decisions. The criticism is not only about dilution in theory, but about the sequence of how the pool expanded while new share issuance financed Bitcoin purchases.

Metaplanet acknowledged in an Aug. 18 notice that expanding the share pool “amplifies the dilution borne by existing shareholders.” That admission is central to the contention: even if a freeze stops further automatic expansion, shareholders argue the damage had already accrued.

One pseudonymous shareholder, “Bitcoin Pharaoh,” also alleged that Bailey personally benefited from Metaplanet stock options, claiming Bailey received 300,000 options at a strike price of 105 Japanese yen when Metaplanet’s stock was reportedly trading at 510 yen. The allegation was presented as part of the shareholder critique, emphasizing perceived incentive misalignment and potential conflicts around board-related roles. Bailey did not provide a detailed rebuttal within the text provided, but he did publicly defend the overarching executive option structure.

CEO Gerovich: governance review and the 10th Series exercise update

Metaplanet CEO Simon Gerovich said the company would review governance and compensation policies and share updates once the work is complete. In a Sunday X post, Gerovich also sought to distance himself from shareholder discussions tied to MMXX Ventures, explaining that he is a significant but non-majority shareholder in MMXX’s parent company and that he does not hold an executive role.

Separately, on Aug. 31, Metaplanet revealed that the CEO exercised 92,000 shares from the 10th Series executive options pool. The exercise detail matters in this context because it illustrates that the incentive program in question moved from a theoretical cap-table mechanic into completed transactions tied to company performance and/or capital-market actions.

As the controversy escalated, Metaplanet’s earlier documentation and the Aug. 18 freeze appear to be the company’s attempt to address the immediate dilution concern by halting further pool expansion. However, critics continue to argue that transparency and fairness still require broader remedy—particularly if earlier expansions increased dilution beyond what holders expected.

External calls to freeze remaining rights and replace the structure

Outside commentary has added pressure by reframing what a better incentive approach could look like. VanEck’s head of digital asset research, Matthew Sigel, argued in a Wednesday X post that Metaplanet should “freeze” further exercise rights from the 10th Series option pool. Sigel also suggested holders voluntarily surrender the excess rights and weigh additional options tied to shares that were already exercised.

Most notably, Sigel proposed replacing “Series 10” with a shareholder-approved five-year incentive plan tied primarily to BTC per fully diluted share. That suggestion speaks directly to the core criticism: that tying the incentive to a cap-table percentage, rather than directly to Bitcoin ownership metrics normalized by fully diluted share count, can create outcomes where management’s equity gain does not map cleanly to shareholders’ contribution after dilution effects are considered.

At the time of Cointelegraph’s report, it indicated a request for comment from Metaplanet on whether the company would consider freezing remaining shares in the executive pool. The market also appeared to react to the debate and corporate updates: Metaplanet shares closed higher in Wednesday’s Tokyo trading, trimming their five-day decline to roughly 16.3%, according to Yahoo Finance.

For investors, the next key signal to watch is whether Metaplanet’s announced governance review results in concrete changes—particularly around whether any remaining 10th Series rights will be frozen and whether a new, shareholder-approved incentive framework is put forward and clearly tied to Bitcoin per fully diluted share rather than automatic cap-table expansion.

Corn has launched a private members club for digital asset holders after closing its Bitcoin layer-2 network, as a third investment from Polychain Capital has taken its total funding to $19 million.

Corn closed its Bitcoin layer 2 after deposits fell

Corn said in a statement shared with crypto.news that its new club combines a stablecoin payment card with a named concierge, private events and travel services for digital asset holders.

The launch follows Corn’s decision to retire the Bitcoin layer-2 network on which the company was originally built. Although the network held around $1 billion in deposits at its peak, founder Chris Spadafora said much of the capital had arrived to collect incentives rather than use the network over time.

“We built serious infrastructure and it worked. At peak the network held around a billion dollars in deposits. What it taught me is the difference between usage and demand,” Spadafora said.

According to the founder, much of the capital moved elsewhere once the incentives returned to normal. Watching the deposits leave changed how the team assessed product demand and eventually led it to reconsider Corn’s business.

The network ceased operations on June 30, 2026, Spadafora said. Corn notified its community in advance and provided an extended withdrawal period before the shutdown.

Step-by-step guides explained how users could bridge assets out of the network, close protocol positions, and claim locked tokens. Withdrawals remained available through Corn’s self-service bridge until the sequencer went offline.

Spadafora said the experience also showed the team that Bitcoin had settled into a role as an asset people saved, while stablecoins had become a tool for transfers, spending and settlement.

“Private banks don’t recognize self-custody. Concierge services don’t take stablecoins. So instead of shipping more rails, we built what sits above them: a private members club purpose-built for digital asset holders.”

Corn’s new model replaces blockchain infrastructure with a service business built on existing payment and stablecoin systems. Every member receives one assigned concierge who keeps track of their preferences, portfolio, and priorities, according to the company.

Polychain’s third investment takes funding to $19M

Polychain Capital has invested in Corn for a third time, bringing the company’s total funding to $19 million. Corn declined to break out the amount supplied through the latest investment.

Before securing the new backing, Corn told Polychain that the thesis behind its original funding had not found product-market fit, Spadafora said. The company then presented its findings on how crypto holders store and use their money, along with a plan for a membership club tied to a stablecoin card.

“Their latest investment shows their conviction not only in our new direction, but in our team as a whole. Funds don’t make a third investment out of politeness,” Spadafora said.

According to the founder, the money will support the concierge operation, card rollout, and member experience. He described the spending plan as focused on “depth, not reach,” with personal service forming the main product.

Polychain co-chief investment officer Luke Pearson said:

“We’re deepening our support for Corn because we believe their approach stands out from the rest. They’ve taken the private-client service and concierge relationship only found at the top tier of traditional finance products, and are building and reimagining it for people whose money lives in stablecoins and whose lives operate around the world.”

Corn has positioned the club as an alternative to crypto cards that compete mainly through fees, rewards, and interest rates. Instead, the company is pairing stablecoin spending with invitation-only services and direct support from a named concierge.

Applications can be submitted through Corn’s website, but the company will review each request before granting membership. A prospective member’s holdings form part of the assessment, although Corn has no published asset threshold or fixed approval formula.

Corn stablecoin card provides variable limits based on member holdings

Approved members receive a Visa card with variable spending limits based on the digital assets they hold. Corn said the assets are not pledged as collateral because spending settles against the member’s stablecoin balance.

Members can deposit USDC and USDT from major blockchain networks, according to Spadafora. Regardless of the deposit network or supported stablecoin, balances settle in USDC on Base.

Corn said members place their stablecoins in an embedded wallet controlled by the user rather than a pooled company account. The available balance determines the card’s spending threshold, while the funds remain in the wallet until a purchase occurs.

“Corn never holds the balance and there’s no pooled account anywhere in the system,” Spadafora said. “Spend settles against the member’s own balance, which stays in their wallet until the moment of spend.”

A card transaction is authorized through Visa in real time against a limit linked to the deposited balance. Settlement then draws from the member’s stablecoins through the infrastructure operating behind the card.

Rain, a regulated card platform, issues and processes Corn’s cards, Spadafora said. Members must complete full know-your-customer checks through a regulated identity provider before using the product.

According to the founder, identity documents do not touch Corn’s servers. Withdrawals from the card path require authorization from the member and a co-signature from the card platform, meaning neither party can move funds alone.

The card will be available to members in more than 50 countries, including the United States. Corn plans additional market-by-market rollouts through the fall.

Demand for stablecoin-linked cards has risen alongside their availability. As crypto.news reported in August, tracked crypto card spending reached $759 million in July, up from $306 million a year earlier.

Cardholders completed nearly 9 million purchases during the month, with an average value of about $86, according to Paymentscan data cited by a16z crypto. USDC accounted for 58% of the tracked volume, while USDT handled another 26%.

Optimism processed about 29% of the tracked blockchain settlement, followed by Solana and Base at 19% each. Corn’s use of Base for USDC settlement places the card on one of the three largest networks in Paymentscan’s July dataset.

A separate August report on stablecoin card forecasts cited a Paymentscan headline total of about $1.04 billion for July. Variations in reporting methods can produce different totals, particularly when datasets combine transactions observed onchain with figures supplied by card providers.

Corn membership adds concierge and quarterly programs

Alongside the card, Corn’s membership includes private dinners and events in cities where members live or travel. Requests go through the member’s assigned concierge rather than a general support channel.

The company is also introducing two quarterly programs. Impossible Moments will present private openings, limited seats, and other experiences that are not ordinarily available for public booking, with each listing offered at a stated price.

Under Corn Curated, a guest tastemaker will select restaurants, hotels, and travel experiences for the following three months. Members can arrange items from the list through their concierge, while each curator will introduce the person responsible for the next quarter.

The first program experiences will roll out this quarter, according to Corn. Future offerings will cover sporting events, travel, private dining and cultural experiences arranged through the company’s network.

For US users, Corn enters a market where stablecoin infrastructure now operates under a federal framework created by the GENIUS Act. An earlier report on the Open USD initiative noted that the law established national rules for payment stablecoin issuers after President Donald Trump signed it in 2025.

Visa said at its June 2026 Payments Forum that its stablecoin settlement run rate had reached about $7 billion as of March. More than 160 stablecoin-linked card programs were live or under development at the time, according to figures included in the same report.

Bitcoin appears to be showing signs of a recovery in on-chain profitability despite the broader market still wrestling with uncertainty around where this cycle’s lows may ultimately form. A widely watched measure—spent output profit ratio (SOPR)—has remained above its breakeven level for an unusually long stretch in 2026, echoing patterns typically seen earlier during bull-market rebounds.

At the same time, analyst David Puell cautioned in a recent interview that SOPR’s improvement may not be enough by itself to conclude a bear-market floor is already in place. His view suggests that investors should respect the possibility of additional downside even as on-chain behavior turns more constructive.

Key takeaways

• According to CryptoQuant, Bitcoin’s SOPR has stayed above the breakeven threshold of 1 since Aug. 19, currently around 1.002.
• The current three-week run is the longest bullish SOPR streak of 2026, a pattern often associated with early bull-market recovery conditions.
• Checkonchain’s wallet cohort analysis suggests UTXO profitability is beginning to resemble bull-market dynamics, including more profit-taking that doesn’t immediately flip back to losses.
• Despite the SOPR rebound, David Puell says investors still need more evidence before assuming the next bear-market floor is already set.

SOPR’s longest bullish streak in 2026

Crypto analytics platform CryptoQuant reports that Bitcoin’s SOPR has been above its breakeven level of 1 since Aug. 19. SOPR evaluates whether coins spent on-chain are moving at a gain or a loss relative to the price basis at their prior transaction—so values above 1 generally indicate that spent outputs are more often being realized in profit.

In the current reading, SOPR sits near 1.002, a level slightly above breakeven but important because the metric tends to oscillate tightly around 1 for extended periods. What stands out here is duration: the measure has remained bullish for three full weeks, marking the longest such streak recorded so far this year.

That timing matters for traders because SOPR doesn’t just reflect a one-off bounce—it can signal whether the market is transitioning from “rally then sell” behavior typical of bear phases to “buy-the-dip” patterns often observed in earlier bull recoveries.

Wallet cohort analysis points to a profit-taking shift

SOPR can be further divided by wallet cohort, helping distinguish whether profitability is improving primarily among newer participants or whether longer-term holders are also spending in ways that suggest broad-based recovery. As noted by CryptoQuant-linked commentary, breaking SOPR down by investor groups can clarify whether on-chain gains are being concentrated or becoming more generalized.

Building on this type of analysis, Checkonchain highlighted short-term holder (STH) SOPR—tracking profitability for coins held for up to six months without selling. In a weekend post on X, Checkonchain said the market’s structure is starting to resemble early bull-market recovery behavior:

“In bear markets, rallies back into profit tend to get sold. In bull markets, short sharp moves below break-even tend to become buy-the-dip setups. The current structure is starting to look more like those early bull-market recoveries.”

The implication is not that drawdowns are impossible, but that the market may be failing to revert quickly to loss-making conditions after moving back toward profitability. If that continues, it can strengthen the case that the market is shifting toward more sustainable accumulation rather than transient bounce dynamics.

David Puell: SOPR helps, but downside risk remains

Even with the improving SOPR trend, David Puell—an investor and portfolio manager known for creating the Puell multiple indicator—stressed in an interview with CryptoQuant released on Sept. 4 that investors should not assume the next bear-market bottom has already been established.

Puell’s stance came as the BTC/USD market has been holding a local range around $80,000. He argued that more evidence is required before changing his long-term bias toward an already-confirmed recovery. When asked about how Bitcoin’s 25% August upside might play out heading into Q4, Puell suggested further upside is the less likely outcome and framed his position as a downside risk.

In his words, “In our view, as of now, we leave it as a downside risk.” He also emphasized what he sees as the key prerequisite for altering his outlook: SOPR needs to remain above 1 for a longer period, alongside the broader requirement that investors are “realizing profits consistently without price going back to a new low.”

Importantly, Puell’s thesis doesn’t rely solely on on-chain profitability. He pointed to a technical requirement as well—Bitcoin needs to start printing a sequence of higher highs and higher lows on weekly time frames. Cointelegraph previously reported that this pattern remains absent on weekly charts, reinforcing the idea that on-chain improvement may currently be running ahead of price structure.

From “bear market over” to “prove it”: what to watch next

The SOPR recovery also follows earlier comments from CryptoQuant CEO Ki Young Ju, who—based on readings from the platform’s Bull/Bear Market Cycle Indicator—described the bear market as already “over.” That earlier claim, contrasted with Puell’s more cautious requirements, highlights a recurring tension in crypto market analysis: on-chain signals can improve before price confirms the new regime, and different indicators can lead at different speeds.

What readers should focus on now is whether the SOPR streak turns into a sustained shift rather than a temporary excursion. Puell effectively sets a bar: SOPR must hold above breakeven for longer while price does not revisit fresh cycle lows. Traders and investors should also watch for whether weekly price action begins to display the higher-highs and higher-lows structure Puell says is still missing.

If SOPR remains bullish and weekly structure eventually strengthens, the current on-chain pattern could transition from “early recovery resemblance” to a stronger confirmation of a cycle change. If instead SOPR fades back toward losses while price fails to build trend, the market may be demonstrating the kind of bear-market volatility where profit-taking doesn’t last.

Bitcoin (BTC) is breaking with typical bear-market behavior as a classic onchain metric puts in its longest bullish streak of 2026.

Key points:

• Bitcoin’s SOPR metric has stayed above its breakeven point of 1 for three full weeks, its longest stint in 2026.
• Analysis suggests that UTXO profitability is reflecting a return to bull-market conditions.
• David Puell says SOPR must stay bullish for longer, seeing more BTC price downside to come.

SOPR data repeats early bull-market activity 

Data from crypto analytics platform CryptoQuant shows that the spent output profit ratio (SOPR) has now been above its breakeven level of 1 since Aug. 19. SOPR measures the extent to which coins moving onchain do so at a higher or lower price compared to the previous transaction. 

The metric, which generally moves in a tight range around 1, currently measures 1.002. Values above 1 indicate that coins are mostly being moved in profit — a sign of overall bullish market momentum. This signal has now endured for three weeks, marking the longest stretch of bullish SOPR of 2026 so far.

Bitcoin SOPR chart. Source: CryptoQuant

SOPR can be broken down by wallet cohort to differentiate profitability between newer and older investors. Commenting on SOPR readings for short-term holders (STHs), wallets holding a UTXO without selling for up to six months, onchain analytics suite Checkonchain added to hopes that Bitcoin is staging a long-term bullish recovery.

“In bear markets, rallies back into profit tend to get sold. In bull markets, short sharp moves below break-even tend to become buy-the-dip setups. The current structure is starting to look more like those early bull-market recoveries,” it told X followers at the weekend.

Bitcoin STH-SOPR data. Source: Checkonchain on X.com

Puell retains Bitcoin price “downside risk” despite SOPR recovery

Despite BTC/USD holding a local range around $80,000 while the SOPR profitability streak continues, the pair could still hit new macro lows this cycle, one of the industry’s best-known analysts warns.

Related: New Bitcoin whales spark sell-side risk as unrealized gains hit $9B

In an interview with CryptoQuant on Sept. 4, ARK Invest portfolio manager David Puell, creator of the Puell multiple BTC price indicator, said that more evidence was needed to assume that the next bear-market floor is already in.

Asked about how Bitcoin’s 25% August upside could play out going into Q4, Puell suggested that further upside was the less likely outcome.

“In our view, as of now, we leave it as a downside risk,” he said.

Puell singled out SOPR signals as a key prerequisite for changing his long-term bias, stating that the metric needs to remain above 1 for an extended period, with investors “realizing profits consistently without price going back to a new low.” 

Bitcoin must also start putting in series of higher highs and higher lows — a pattern that Cointelegraph reported is still absent on weekly time frames. 

In late August, CryptoQuant CEO Ki Young Ju described the bear market as already “over” on the back of the latest readings from its proprietary Bull/Bear Market Cycle Indicator.