MicroStrategy Incorporated (MSTR) has introduced a performance metric termed “Bitcoin Yield” (BTC Yield) to assess the effectiveness of its Bitcoin acquisition strategy. This metric represents the percentage change over a specific period in the ratio between the company’s Bitcoin holdings and its assumed diluted shares outstanding. The assumed diluted shares include all actual shares plus potential shares from convertible notes, stock options, and other instruments. 

By focusing on BTC Yield, MicroStrategy aims to demonstrate its ability to increase Bitcoin holdings at a rate surpassing the issuance of new shares, thereby enhancing shareholder value. As of August 1, 2024, the company reported a year-to-date BTC Yield of 12.2% and set a target of achieving an annual BTC Yield between 4% and 8% over the next three years. 

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.

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MicroStrategy’s “Bitcoin Yield” (BTC Yield) is a performance metric that measures how effectively the company increases its Bitcoin holdings relative to its total number of shares. It calculates the percentage change over time in the ratio of Bitcoin owned to the number of 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 the company is acquiring Bitcoin at a faster rate than it is issuing new shares, thereby enhancing the value of each share. As of August 1, 2024, MicroStrategy reported a year-to-date BTC Yield of 12.2% and aims for an annual BTC Yield between 4% and 8% over the next three years.