Metaplanet adopts ‘BTC Yield’ as a key performance indicator

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

In Metaplanet’s notice released Oct. 25, the firm described “BTC Yield” as a metric that calculates the period-over-period percentage ratio between the company’s Bitcoin(BTC) 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 announcement also notes that the BTC Yield strategy was pioneered by MicroStrategy, a U.S company that has grown to be the largest corporate Bitcoin holder with its Bitcoin investment strategy.

“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,” wrote Metaplanet in their notice.

Since July 1, 2024 up until Sept. 30, 2024, the company reported its BTC Yield amounted to 41.7%. Meanwhile throughout their October period —up until Oct. 25— Metaplanet’s BTC Yield was 116.4%.

According to Metaplanet’s notice, 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.

Though, 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 nor liquidity.

CEO of Metaplanet, Simon Gerovich, shared the notice in an X post. He describes BTC Yield as a way to “assess the performance of its Bitcoin acquisition strategy.”

He stated that the increase Metaplanet’s BTC Yield in October compared to its previous July-September period reflects a 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.

As of Oct. 16, Metaplanet’s total Bitcoin holdings have amounted to 861.39 BTC or equal to $59.04 million based on current market prices. At the time of writing, Bitcoin is trading hands at $67,385, going up 0.54% 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.