Metaplanet’s Bitcoin strategy earns 116% yield for shareholders

Tokyo-listed investment firm Metaplanet has announced that its ongoing Bitcoin purchases have delivered positive returns for shareholders, with a reported 116% yield this month, according to an Oct. 25 statement.

This gain reflects a substantial jump from the 41.7% yield recorded on Metaplanet’s Bitcoin holdings from July 1 to Sept. 30.

The company attributed this sharp increase to a notable rise in its Bitcoin holdings, which more than doubled compared to the previous quarter. Metaplanet acquired over 450 BTC in October alone, bringing its total holdings to 855.5 BTC, valued at over $56.1 million.

BTC Yield reporting

The yield returns were reported for the first time on Oct. 25 after Metaplanet revealed that it had adopted the “BTC Yield” as an official key performance indicator (KPI).

The company introduced this measure after being inspired by MicroStrategy, the largest corporate holder of the top asset. This metric calculates the percentage change in the ratio between total Bitcoin holdings and fully diluted shares. Notably, the Michael Saylor-led firm introduced the BTC Yield metric in August.

Metaplanet said it would follow this model and provide regular BTC Yield updates with future Bitcoin purchases. The Japan-based firm said its reporting would be updated quarterly and year-to-date, providing information on its total Bitcoin holdings, issued shares, and Bitcoin per fully diluted share.

Metaplanet’s CEO Simon Gerovich explained that the reporting approach is intended to give investors greater insight into how Bitcoin acquisitions can potentially boost 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.”

Metaplanet, however, conceded that this KPI has its limitations. Specifically, it does not account for debt and other liabilities. Additionally, it does not represent historical or future returns that shareholders might gain from the company’s shares.

The firm further clarified that BTC Yield does not reflect operational income, Bitcoin investment returns, or other financial performance metrics.

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