Metaplanet Achieves Impressive 116% Yield on Bitcoin Holdings

In a recent announcement, Tokyo-based investment firm Metaplanet reported impressive gains from its Bitcoin acquisitions, achieving a remarkable 116% yield in October.

This represents a significant increase from the 41.7% yield recorded from July through September.

The firm attributed this surge to a considerable expansion of its Bitcoin portfolio, which more than doubled in size compared to the previous quarter. In just October, Metaplanet acquired over 450 BTC, raising its total holdings to 855.5 BTC, currently valued at more than $56.1 million.

On October 25, Metaplanet also unveiled its new metric, “BTC Yield,” as part of its key performance indicators (KPIs) to assess its Bitcoin investments. Inspired by MicroStrategy, known for being a major corporate Bitcoin holder, this metric calculates the percentage change in the ratio of total Bitcoin holdings to fully diluted shares. Metaplanet plans to provide regular updates on this metric alongside its future Bitcoin purchases, reporting quarterly and year-to-date figures on total holdings, issued shares, and Bitcoin per fully diluted share.

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CEO Simon Gerovich emphasized that this reporting method aims to enhance transparency for investors, helping them understand how Bitcoin investments can potentially enhance shareholder value. He noted, “This KPI, pioneered by MicroStrategy, will help investors better understand how Metaplanet’s approach to acquiring Bitcoin using equity capital is accretive to shareholders.”

However, Metaplanet acknowledged the limitations of the BTC Yield metric, pointing out that it does not consider the company’s debts or liabilities. Moreover, it does not provide a comprehensive view of historical or potential future returns for shareholders. The firm clarified that BTC Yield does not represent operational income, Bitcoin investment returns, or other traditional financial performance metrics.

Kosta Gushterov