Michael Saylor, Executive Chairman of MicroStrategy, has introduced the concept of “Bitcoin Yield” (BTC Yield) to assess the company’s effectiveness in increasing its Bitcoin holdings relative to its share count. This metric measures the percentage change over a specific period in the ratio between the company’s Bitcoin holdings and its assumed diluted shares outstanding, which includes all actual shares plus potential shares from convertible notes, stock options, and other instruments. A higher BTC Yield indicates that MicroStrategy is acquiring Bitcoin at a faster rate than it is issuing new shares, thereby enhancing the value of each share. As of September 12, 2024, MicroStrategy reported a quarter-to-date BTC Yield of 4.4% and a year-to-date BTC Yield of 17.0%. 

This approach underscores MicroStrategy’s commitment to leveraging Bitcoin as a strategic asset, with BTC Yield serving as a key indicator of the company’s success in executing this strategy.

For a more in-depth discussion on Bitcoin Yield, you might find this video informative: