Metaplanet adopts ‘BTC Yield’ as a key performance indicator

Following MicroStrategy, Japanese investment firm Metaplanet has adopted “BTC Yield” as a key performance indicator to evaluate its Bitcoin purchasing strategy.

In Metaplanet’s announcement published on October 25, the firm defined “BTC Return” as a metric that calculates the period-to-period percentage ratio between the company’s Bitcoin(BTC) holdings and fully diluted shares.

Bitcoin holdings refer to the incremental number of BTC reserves currently held by the firm, while fully diluted shares are the total number of common shares issued and additional shares accumulated at the end of each period.

The announcement also states that the BTC Yield strategy was pioneered by the US company MicroStrategy, which has become the largest institutional Bitcoin holder with its Bitcoin investment strategy.

“The company uses BTC Yield as a KPI to help evaluate the performance of its buying strategy
Metaplanet wrote in its notice that Bitcoin is in a way that the company believes contributes to shareholders.

From July 1, 2024 to September 30, 2024, the company reported BTC Return of 41.7%. Meanwhile, during the October period (until October 25th) Metaplanet’s BTC Return was 116.4%.

According to Metaplanet’s notification, the inclusion of BTC Yield as a KPI means that the company will disclose the BTC Yield percentage with each Bitcoin purchase notification and regular updates.

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

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

Metaplanet CEO Simon Gerovich shared the notification in an X post. He describes BTC Return as a way to “evaluate the performance of a Bitcoin purchasing strategy.”

He noted that the increase in Metaplanet’s BTC Return in October compared to the 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 profitable Metaplanet’s approach to acquiring Bitcoin using equity is for shareholders,” Gerovich said.

(日本語は英語の後に続きます)
Metaplanet adopted “BTC Return” as a key performance indicator (KPI) to evaluate the performance of its Bitcoin purchasing strategy. BTC Yield measures the period-by-period percentage change in the ratio between the Company’s Total Bitcoin… https://t.co/5ELg9GrZQE

— Simon Gerovich (@gerovich) 25 October 2024

As of October 16, Metaplanet’s total Bitcoin holdings equaled 861.39 BTC, or $59.04 million at current market prices. At the time of writing, Bitcoin is trading at $67,385, up 0.54% in the last 24 hours.

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