Metaplanet adopts ‘BTC Yield’ as a key performance indicator

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As a seasoned researcher with a penchant for deciphering financial trends, I find the adoption of “BTC Yield” by Metaplanet as a key performance indicator (KPI) to assess its Bitcoin acquisition strategy intriguing. This move mirrors MicroStrategy’s approach and underscores the growing importance of digital assets in the global financial landscape.

The investment company Metaplanet, based in Japan, has chosen “Bitcoin Return on Investment” as a crucial benchmark for evaluating their Bitcoin purchase approach, mirroring the steps taken by MicroStrategy.

As an analyst, I’d rephrase that statement like this: On October 25th, Metaplanet explained that “BTC Yield” is a metric they use to determine the percentage change over time between their Bitcoin (BTC) holdings and the total number of shares that could potentially be outstanding if all possible shares were issued.

Bitcoin assets indicate the increasing quantity of Bitcoin reserves currently owned by the company, whereas fully diluted shares represent the complete count of issued common stocks plus any extra shares that could potentially be issued during specified time periods.

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.

In simpler terms, Metaplanet stated that they measure the success of their Bitcoin acquisition strategy by looking at BTC Yield. They believe this approach benefits their shareholders.

From July 1, 2024, to September 30, 2024, the company’s Bitcoin Yield stood at 41.7%. On the other hand, during their October period (up until October 25), Metaplanet’s Bitcoin Yield reached 116.4%.

As stated in Metaplanet’s announcement, incorporating Bitcoin Yield (BTC Yield) as a Key Performance Indicator (KPI) implies that the company will share its BTC Yield percentage with every Bitcoin purchase notification and in their routine reports.

Metaplanet noted that they would provide these specific measurements with every Bitcoin buying announcement, ensuring our investors stay updated on the advancement and effects of our Bitcoin investment approach.

Despite recognizing the restrictions associated with the Key Performance Indicator (KPI), Metaplanet made it clear that BTC Yield should not serve as a measure of operational efficiency, financial success, or liquidity.

In his recent post on X, Metaplanet’s CEO, Simon Gerovich, explained that BTC Yield serves as a tool for evaluating their approach to investing in Bitcoin.

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.

Gerovich stated that this Key Performance Indicator, first introduced by MicroStrategy, serves to clarify for investors the way Metaplanet’s method of buying Bitcoin with equity funds enhances the value for shareholders.

Metaplanet uses “BTC Yield” as a primary benchmark (Key Performance Indicator or KPI) to evaluate the effectiveness of its Bitcoin procurement approach. This metric calculates the percentage variation from one period to another in the ratio between Metaplanet’s total Bitcoins and some other relevant factor, typically the investment made or time elapsed.

— Simon Gerovich (@gerovich) October 25, 2024

Currently, Metaplanet holds a total of 861.39 Bitcoins, which translates to approximately $59.04 million, given today’s market prices. At this moment, Bitcoin is being exchanged at around $67,385 per coin, showing an increase of 0.54% over the past 24 hours.

It’s been referred to as “Asia’s MicroStrategy” because of its increasing Bitcoin holdings. Metaplanet made the move to purchase Bitcoin reserves way back in May 2024, as a tactic to cope with the economic difficulties that Japan was experiencing during that period.

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2024-10-25 12:00