Japanese investment firm Metaplanet has announced the adoption of “BTC Yield” as a key performance indicator (KPI) to evaluate its Bitcoin acquisition strategy, following the lead of MicroStrategy.
In a notice released on October 25, Metaplanet defined “BTC Yield” as a metric that calculates the percentage ratio of the company’s Bitcoin holdings to its fully diluted shares outstanding on a period-over-period basis. This metric provides insight into the firm’s growing Bitcoin reserves relative to the total number of common shares issued.
Metaplanet credited MicroStrategy for pioneering the BTC Yield strategy, which has helped it become the largest corporate holder of Bitcoin. The firm stated, “We use BTC Yield as a KPI to assess the performance of our Bitcoin acquisition strategy in a way that is believed to benefit shareholders.”
The report revealed that Metaplanet’s BTC Yield reached 41.7% for the period from July 1 to September 30, 2024. Remarkably, in October—up to the 25th—the firm reported a BTC Yield of 116.4%.
With the inclusion of BTC Yield as a KPI, Metaplanet will disclose its BTC Yield percentage alongside each Bitcoin purchase announcement and in regular updates. “These metrics will help keep our shareholders informed about the progress and impact of our Bitcoin acquisition strategy,” the firm added.
However, Metaplanet cautioned that BTC Yield should not be interpreted as a measure of operating performance, financial health, or liquidity.
CEO Simon Gerovich highlighted the importance of this metric in evaluating the effectiveness of Metaplanet’s Bitcoin strategy, noting that the increase in BTC Yield from the previous quarter signifies significant growth in the company’s Bitcoin holdings. “This KPI will help investors understand how our approach to acquiring Bitcoin with equity capital is beneficial to shareholders,” Gerovich stated.
As of October 16, Metaplanet holds a total of 861.39 BTC, valued at approximately $59.04 million based on current market prices. Bitcoin is currently trading at $67,385, reflecting a 0.54% increase in the past 24 hours.
Due to its expanding Bitcoin reserves, Metaplanet has been referred to as “Asia’s MicroStrategy.” The firm announced its Bitcoin investment strategy in May 2024 as a response to the economic challenges facing Japan.
