Publicly listed Bitcoin (CRYPTO: BTC) treasury companies are no longer just passive holders of BTC.
A new financial model, leveraging traditional capital markets tools like share issuance and fixed-income debt, is enabling these firms to outperform Bitcoin itself in BTC terms.
At the core of this model is a focus on growing the Bitcoin-per-share (BPS) ratio.
Rather than simply tracking Bitcoin’s price, these companies aim to accumulate more BTC per outstanding share over time.
The result is a growing “BTC yield,” a return denominated not in fiat but in Bitcoin units.
Strategy (NASDAQ:MSTR), the most prominent example, has perfected this playbook.
The company regularly conducts at-the-market (ATM) equity offerings, issuing new shares when its stock is trading at a premium to its net asset value (NAV).
The capital raised is immediately used to purchase more BTC.
Despite diluting shareholders in nominal terms, these actions are accretive to the BPS ratio, meaning that each share is backed by more BTC than before.
This …