NEWSLETTER
In the world of traditional finance, evaluating the success of a company generally means tracing income growth, profits per action or the return of capital. But what happens when the core of the strategy of a company does not sell products or services, but accumulates bitcoin?
That is the question facing a new kind of bitcoin Treasury companies. These are companies that quote on the stock market whose central mission is to acquire and maintain long -term bitcoin. And to understand if they are successful, we need a new set of tools.
This article presents these tools: new key performance indicators (KPI) designed to assess how well a company is executing its bitcoin strategy. Many of these indicators have been pioneers by Michael Saylor and his company, strategy, where they can be implemented in their new panel. These new metrics may sound complex at the beginning, but once broken down, they offer a powerful vision of whether a bitcoin treasure company is really delivering for its shareholders.
1. btc Performance: accumulation measurement, no profits
What is it: btc's performance tracks the percentage change over time in the relationship between bitcoin's holdings of a company and its completely diluted shares. In simple terms: how much more bitcoin has for possible stock action.
Why does it matter: This kpi is designed to answer a unique question: Is the company acquiring bitcoin in a way that benefits shareholders?
Let's say a company has 10,000 btc and has 100 million diluted shares. That is 0.1 btc per action. If, a year later, it has 12,000 btc and has 105 million shares, it now has ~ 0.114 btc per share, an increase of 14%. That 14% is your btc performance.
What makes it unique: btc's performance does not care about earnings or EBITDA margins. It focuses on how effectively the company is increasing bitcoin's property in relation to the number of actions that could exist. This is the key in a strategy that implies the use of capital to buy btc. If management is printing new actions to buy bitcoin, shareholders want to know: bitcoin per action is going up or down?
How to use it: Investors can track the performance of btc over time to see if the dilution (more shares) is being compensated by bitcoin accrendects (more btc). A constantly ascending btc performance suggests that management is running well.
2. btc gain: Bitcoins -based growth metric
What is it: btc GAIN takes the performance of btc and applies it to the company's initial bitcoin balance for a period. It tells him how much “extra” theoretical bitcoins that the company effectively added through acrective behavior.
Why does it matter: This is a way to visualize the performance of btc not as a percentage, but as bitcoin itself. If the btc yield for the quarter is 5% and the company began with 10,000 btc, the btc gain is 500 btc.
What makes it unique: It helps you think in terms of bitcoin, which aligns with the long -term objective of the company. Shareholders are not only looking for more btc, they want more btc per action. btc GAIN helps quantify how much more btc would have had the company if it started from scratch and grow by creditors.
How to use it: btc's gain is especially useful when comparing different periods of time. If a quarter sample 200 btc and the following sample 800 btc gain, you know that the company's bitcoin strategy had a much stronger impact in the second period, even if the btc price remained stable.
3. btc $ profit: Bring bitcoin profits to dollar terms
What is it: btc $ profit translates btc in US dollars by multiplying it by the price of bitcoin at the end of the period.
Why does it matter: Investors still live in a world dominated by Fiat. bitcoin -based growth conversion in terms of dollar helps close the communication gap between bitcoin's native strategy and the traditional expectations of shareholders.
What makes it unique: This metric offers a hybrid lens: growth called bitcoin, seen in Fiat terms. But here is the capture: btc $ Gain can show a positive number even if the real value of the company's holdings decreased (because the metric is based on the accumulation adjusted by shares, not a fair market value accounting).
How to use it: Use this metric to contextualize how much value (in dollars) the company's bitcoin acquisition strategy may have created for a period, just remember that it is not a measure of profits. It is a reflection of growth in participation, not the gain or accounting loss.
4. bitcoin Nav: A bitcoin Holdings snapshot
What is it: bitcoin Nav (Net Assets Value) is the market value of the company's bitcoin holdings. It is simply calculated: bitcoin Price × bitcoin Count.
Why does it matter: It gives a snapshot of the “war chest” of bitcoin of the company, simply and plainly.
What makes it unique: Unlike the traditional Christmas used in mutual funds or ETF, this version ignores liabilities such as debt or preferred actions. He is not intended to tell him that shareholders would obtain in a liquidation. Instead, it's alone: How much bitcoin does the company have and what is worth at this time?
How to use it: Use bitcoin Nav to understand the company's bitcoin strategy scale. A rising ship could reflect more bitcoin, higher or both prices. But remember: it is not adjusted by debt or financial obligations, so it is not a complete image of the value of the shareholders.
5. btc qualification: The leverage verification that does not have to guess on
What is it: The btc qualification is a simple relationship: the bitcoin market value of the company divided by its total financial obligations. It shows how much of the company's debt and liabilities they could be covered by their bitcoin holdings.
Why does it matter: This metric offers a native bitcoin snapshot of the balance resistance. It helps investors quickly evaluate whether a company's bitcoin strategy is backed by a solid capital structure, or overwhelmed by obligations.
What makes it unique: Unlike traditional credit grades that depend on opaque models and institutional trust, the btc qualification is transparent and verifiable. bitcoin's entries, holdings and liabilities are public. He put the solvency in sight, without the need for the permission or opinion of anyone.
How to use it: A btc rating above 1.0 suggests that the company's bitcoin position exceeds its obligations, a strong indicator of strategic flexibility and solvency. A rating below 1.0 may indicate leverage or exposure to refinancing risk. Observing how this relationship evolves over time offers investors a powerful lens to assess whether the company's bitcoin-Primer strategy is being executed in a responsible manner.
Why these metrics import together
Each KPI gives a different lens:
- btc performance It shows accredited growth for shareholders.
- btc gain Translate that in btc terms.
- btc $ profit He puts it in dollars.
- bitcoin Nav It shows the value of bitcoin in raw.
- btc rating Try how that value is compared to liabilities.
Used together, they provide investors a complete image of whether a bitcoin treasury company is:
- Growing your stake effectively
- Protect or improve the value of shareholders
- Manage risk properly
An final note: These metrics are not perfect
These KPI are not traditional financial metrics, and are not destined to be. They ignore things such as operational income, cash flow or even debt service costs. They also assume that the convertible debt will become, not mature.
In other words, they are tools designed to isolate the bitcoin strategyNot the whole business. That is why they should be used next to The financial statements of a company, not as a substitute.
But for investors trying to understand if a company is making intelligent movements in the field of bitcoin, these metrics offer something that traditional tools cannot: clarity about whether management is using capital and capital in a way that bitcoin grows by action.
And in a world of bitcoin-First, that could be the most important metric of all.
Discharge of responsibility: This content was written on behalf of bitcoin for Corporations. This article is intended only for informative purposes and should not be interpreted as an invitation or application to acquire, buy or subscribe for values.
