Tokyo-based investment firm Metaplanet has revealed that its recent Bitcoin purchases have led to impressive returns for shareholders, boasting a remarkable 116% yield for October, as stated on October 25.
This impressive yield showcases a significant rise from the 41.7% recorded in the previous quarter, from July 1 to September 30.
Metaplanet attributes the notable increase in yield to an expansion of its Bitcoin holdings, which have more than doubled compared to the last quarter. In October alone, the firm acquired over 450 BTC, raising its total holdings to 855.5 BTC, valued at over $56.1 million.
Understanding BTC Yield Metrics
The yield figures were disclosed for the first time on October 25, coinciding with Metaplanet’s adoption of the “BTC Yield” as a key performance indicator (KPI).
This new metric was inspired by MicroStrategy, renowned as the largest corporate holder of Bitcoin. The BTC Yield is calculated by examining the percentage change in the ratio of total Bitcoin holdings to fully diluted shares. Notably, this metric was introduced by MicroStrategy in August.
Following this initiative, Metaplanet plans to provide regular updates on BTC Yield in relation to future Bitcoin acquisitions. The company intends to report this data quarterly, offering insights into its total Bitcoin holdings, issued shares, and Bitcoin per fully diluted share.
Insights from Metaplanet’s Leadership
Simon Gerovich, CEO of Metaplanet, emphasized that this reporting framework aims to enhance transparency for investors, illuminating how Bitcoin investments can potentially elevate shareholder value. He stated:
“This KPI, pioneered by MicroStrategy, will help investors better understand how Metaplanet’s approach to acquiring Bitcoin using equity capital is accretive to shareholders.”
Limitations of BTC Yield Reporting
Despite its advantages, Metaplanet acknowledges the limitations of the BTC Yield KPI. It does not consider debts or other liabilities and fails to represent potential historical or future returns that shareholders might gain from the company’s stock.
Furthermore, the firm clarified that the BTC Yield does not account for operational income, Bitcoin investment returns, or any other conventional financial metrics.
