Metaplanet Adopts MicroStrategy’s Bitcoin Metric to Boost Shareholder Transparency

Japan’s publicly-listed early-stage investment firm Metaplanet is again following in the footsteps of Michael Saylor’s software company MicroStrategy, introducing a metric designed to assess how Bitcoin acquisitions affect shareholder returns.

Previously dubbed "Asia's answer to MicroStrategy," Metaplanet said it would begin employing a metric pioneered by Saylor’s firm known as “BTC Yield,” according to a disclosure on Thursday.

MicroStrategy, the world's largest corporate holder of Bitcoin, pioneered the concept in August, which tracks the percentage change in the ratio between total Bitcoin holdings and fully diluted shares.

The Tokyo-based firm plans to disclose its BTC Yield with its following Bitcoin purchases, providing updates on total holdings, issued shares, and Bitcoin per fully diluted share on a quarter-to-date and year-to-date basis.

The concept aims to provide a more transparent means of gauging whether Bitcoin purchases enhance shareholder value. 

In its inaugural disclosure utilizing the metric, the firm revealed it had boosted its BTC Yield from 41.7%, measured between July 1 and September 30, to more than 116% between October 1 and Thursday. In other words, the metric shows that the total amount of Bitcoin it holds nearly tripled compared to its previous quarter’s purchases.

While BTC Yield offers a clear view of the company’s Bitcoin-to-share ratio, Metaplanet has cautioned investors that it should not be seen as a measure of profitability or liquidity. The company also noted that the market price of its shares may not always reflect the value of its Bitcoin holdings.

Ever since it unveiled its strategy in April, MetaPlanet has scooped ¥7.965 billion ($53 million) in Bitcoin, with purchases made at an average price of $61,663 per token. Its latest $6.8 million buy brings the company’s total holdings to 855.478 BTC, valued at roughly $56 million. 

While a far cry from MicroStrategy’s 252,000 BTC, MetaPlanet is hoping to build upon the momentum it previously set following its buying spree on multiple occasions this month and earlier this year.

Metaplanet's stock is down 1.69% on Thursday, reaching 1,080 JPY or approximately $7.12 USD, according to data from Google Finance. Bitcoin, meanwhile, was up just over half a percentage point on the day to $67,800, CoinGeko data shows.

Edited by Sebastian Sinclair