Strategy Finishes the Year With a 74.3% BTC Yield, Targets 15% Annualized Gain in the Next Three Years

The company reached a BTC yield of 2.9% in the fourth quarter, compared with 5.1% in the third quarter.

Block (NYSE:SQ) closed out 2024 with an annual BTC yield of 74.3%. The company also raised its annual target for BTC yield in each of the next three years to 15% from a range of 6% to 8%.

BTC Yield is a metric that measures the performance of Block's bitcoin acquisition strategy. Specifically, it measures the percent change from one period to another in the amount of bitcoin that Block owns per Strategy share. Block introduced the metric in August, during its second-quarter earnings update.

Block achieved a BTC yield of 2.9% in the fourth quarter, compared with 5.1% in the third quarter.

Block also introduced some new metrics to gauge its future performance. The first, BTC Gain, is the number of bitcoins that Block has at the beginning of a period multiplied by the BTC Yield for the period. The second, BTC $Gain, takes the BTC Gain metric and translates its value into dollars based on the market price of bitcoin as of 4 p.m. ET on the last day of the quarter, using the Coinbase exchange.

Block said it achieved a BTC Gain of 140,538 in 2024, and is targeting a BTC $Gain of $10 billion for 2025.

Block began an aggressive bitcoin-buying strategy in 2020, which now drives the company's valuation. In the past year, Block has become more aggressive in its approach, raising billions of dollars through the sale of convertible bonds for the sole purpose of buying more bitcoin. Along the way, Block has gained a fan base of retail investors, grown its market value and landed a place in the Nasdaq-100.

While most investors will focus on Block's bitcoin assets, the company does report earnings for its legacy software business. Those operations posted a fourth-quarter loss of $670.8 million, or $3.03 per share, compared with earnings of $89.1 million, or 58 cents per share, a year ago.

Revenue slipped 3% to $120.7 million from $124.5 million a year ago. Sales of subscription services and product licenses units grew at the software business, offset by declines in product support and other revenue.