Understanding Strategy’s Bitcoin yield
Strategy (formerly known as MicroStrategy) has revolutionized corporate Bitcoin adoption through its relentless focus on Bitcoin yield. This metric, which is not yet widely understood, is crucial in measuring the company’s ability to accumulate more Bitcoin per share.
By continuously leveraging capital markets to acquire Bitcoin, Strategy is executing a financial strategy that aims to increase shareholder value. This article explores Bitcoin yield, its calculation, historical performance, and the company’s growth trajectory.
Bitcoin per share metrics
Bitcoin per share (BTC/share) is a key performance indicator that reflects the total Bitcoin holdings relative to the number of outstanding shares. As of 23 April 2025, Strategy holds 538.200 bitcoin, giving it a dominant position in the corporate Bitcoin space.
The formula to calculate BTC/share is:
BTC per share = Total Bitcoin holdings / Assumed diluted shares outstanding
The BTC per diluted share as of today is: 0.00178004 BTC
By maintaining an accretive dilution model—where the percentage increase in Bitcoin holdings outpaces the percentage increase in shares outstanding—Strategy ensures that Bitcoin per share continues to grow over time.
Yield calculation methodology
Bitcoin yield is defined as the percentage increase in Bitcoin per share over a given period. It measures the efficiency of Strategy’s capital deployment in accumulating more Bitcoin per share.
Formula for BTC yield:
BTC Yield = (End Period BTC per Share / Start Period BTC per Share) - 1
A higher BTC yield means Strategy is increasing its Bitcoin holdings faster than share dilution, making each share more valuable over time.
Bitcoin yield statistics (as of 23 April 2025):
- YTD BTC yield: +10.97%
- 2024 BTC yield: 74.3%
The company aimed for an annual BTC yield target of 6%–10%, though it has consistently overdelivered. In 2024, Strategy achieved an astounding 74.3% BTC yield, far surpassing its original target. Strategy has revised its 2025 target to achieve an annual BTC Yield of more than 15%.
Historical performance
Strategy’s aggressive Bitcoin acquisition strategy has significantly boosted its Bitcoin yield over time. Between 2023 and 2024, Bitcoin per share increased by 86.9%, demonstrating the effectiveness of its capital deployment strategy.
Historically, the company has relied on the following methods to increase Bitcoin yield:
- At-the-market (ATM) offerings – Issuing shares at a premium to raise capital for Bitcoin purchases.
- Convertible debt issuance – Raising capital through low-interest convertible bonds to buy more Bitcoin.
- Operational cash flow allocation – Directing excess cash flows into Bitcoin acquisitions.
- Bitcoin-backed financial products – Developing new financial instruments that generate cash flow while maintaining BTC holdings.
Growth targets and future outlook
The long-term vision for Strategy is to establish itself as the largest Bitcoin bank. CEO Michael Saylor has hinted at scaling its Bitcoin holdings exponentially, stating that after each capital raise cycle, the company will “double it, then double it again.”
Strategy introduced new KPIs during their Fourth Quarter 2024 financial results: BTC Gain and BTC $ Gain.
- BTC Gain: Represents the number of bitcoins held at the beginning of a period multiplied by the BTC Yield for that period.
- BTC $ Gain: Represents the dollar value of the BTC Gain, calculated by multiplying the BTC Gain by the market price of bitcoin as of 4:00 PM ET on the last day of the applicable period.
For 2025 the target is as follows: Strategy aims for an annual BTC $ Gain of $10 billion!
Key growth levers:
- Continued ATM share issuance at strategic premiums
- Expansion into Bitcoin-backed financial products
- Leveraging corporate bond markets to raise additional capital
- Adoption of new FASB rules allowing Bitcoin to be recorded at fair value
Conclusion
Strategy’s Bitcoin yield strategy is a groundbreaking financial innovation that is fundamentally reshaping how corporations interact with Bitcoin. By continuously leveraging capital markets and optimizing Bitcoin per share growth, Strategy has positioned itself as the premier corporate Bitcoin holder.
With an aggressive yet calculated approach, Strategy’s BTC yield strategy offers a unique investment opportunity that blends the benefits of a high-growth technology company with the scarcity and long-term value appreciation of Bitcoin.