Japanese investment firm Metaplanet has adopted “BTC Yield” as a key performance indicator (KPI) to assess its Bitcoin acquisition strategy, following in MicroStrategy’s footsteps.

Understanding BTC Yield

In Metaplanet’s announcement released on October 25, the firm described “BTC Yield” as a metric that calculates the period-over-period percentage ratio between the company’s Bitcoin holdings and its fully diluted shares outstanding. Bitcoin holdings refer to the growing number of BTC reserves currently held by the firm, while fully diluted shares outstanding is the total number of issued common shares and any additional shares accumulated at the end of each period.

The BTC Yield strategy was pioneered by MicroStrategy, a U.S company recognized as the largest corporate Bitcoin holder with its Bitcoin investment strategy. Metaplanet noted, “The company uses BTC Yield as a KPI to help assess the performance of its strategy of acquiring Bitcoin in a manner the company believes is accretive to shareholders.”

Recent Performance and Metrics

Since July 1, 2024, up until September 30, 2024, the company reported its BTC Yield amounted to 41.7%. Throughout the October period—up until October 25—Metaplanet’s BTC Yield was 116.4%. According to the announcement, including BTC Yield as a KPI means that the company will disclose its BTC Yield percentage along with each Bitcoin purchase notice and in its regular updates. “These metrics will accompany each announcement of Bitcoin purchases to keep our shareholders informed about the progress and impact of our Bitcoin acquisition strategy,” added Metaplanet.

However, Metaplanet acknowledged the limitations present in the KPI and emphasized that BTC Yield should not be interpreted as an indicator for operating performance, financial performance, or liquidity.

CEO Insights

CEO of Metaplanet, Simon Gerovich, shared the notice in a social media post. He describes BTC Yield as a way to “assess the performance of its Bitcoin acquisition strategy.” Gerovich stated that the increase in Metaplanet’s BTC Yield in October compared to its previous July-September period reflects significant growth in the company’s Bitcoin holdings. “This KPI, pioneered by MicroStrategy, will help investors better understand how Metaplanet’s approach to acquiring Bitcoin using equity capital is accretive to shareholders,” said Gerovich.

Current Bitcoin Holdings

As of October 16, Metaplanet’s total Bitcoin holdings amounted to 861.39 BTC, equivalent to $59.04 million based on current market prices. At the time of writing, Bitcoin is trading at $67,385, showing a 0.54% increase in the past 24 hours.

Market players have dubbed Metaplanet “Asia’s MicroStrategy” due to its growing Bitcoin reserves. Metaplanet announced its decision to invest in Bitcoin reserves back in May 2024, as a strategy to combat the economic challenges plaguing Japan at the time.

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