Metaplanet Adopts BTC Yield as Key Performance Indicator, Mirroring MicroStrategy's Strategy

Metaplanet Adopts BTC Yield as Key Performance Indicator, Mirroring MicroStrategy's Strategy

Japanese investment firm Metaplanet has introduced “BTC Yield” as a key performance indicator (KPI) to evaluate its Bitcoin acquisition strategy, following the example set by MicroStrategy.


In a notice released on October 25, Metaplanet defined “BTC Yield” as the percentage ratio comparing the company’s Bitcoin holdings to its fully diluted shares outstanding, measured period-over-period. This metric reflects the firm’s growing BTC reserves in relation to the total number of issued common shares and any potential additional shares.


The announcement highlighted that the BTC Yield strategy was pioneered by MicroStrategy, which has become the largest corporate holder of Bitcoin through its investment strategy. Metaplanet stated, “The company uses BTC Yield as a KPI to assess the performance of its Bitcoin acquisition strategy in a manner it believes is beneficial to shareholders.”


From July 1 to September 30, 2024, Metaplanet reported a BTC Yield of 41.7%. Remarkably, this figure surged to 116.4% during October, up until the 25th. The firm indicated that it will now disclose its BTC Yield percentage alongside each Bitcoin purchase announcement and in regular updates to shareholders.


“These metrics will accompany each announcement of Bitcoin purchases to keep our shareholders informed about the progress and impact of our Bitcoin acquisition strategy,” the firm added.


However, Metaplanet cautioned that while BTC Yield is a valuable KPI, it should not be interpreted as a measure of operating performance, financial health, or liquidity.


CEO Simon Gerovich shared insights on X, stating that BTC Yield serves as a tool to evaluate the effectiveness of the company’s Bitcoin acquisition strategy. He noted that the notable increase in BTC Yield for October signifies substantial growth in Metaplanet’s Bitcoin holdings.


“This KPI, pioneered by MicroStrategy, will help investors better understand how Metaplanet’s approach to acquiring Bitcoin using equity capital is advantageous for shareholders,” Gerovich explained.


As of October 16, Metaplanet’s total Bitcoin holdings amounted to 861.39 BTC, valued at approximately $59.04 million based on current market prices. At the time of writing, Bitcoin was trading at $67,385, having risen 0.54% in the last 24 hours.


Due to its expanding Bitcoin reserves, Metaplanet has earned the moniker “Asia’s MicroStrategy.” The firm announced its decision to invest in Bitcoin back in May 2024 as a strategy to navigate Japan’s economic challenges.

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