Why Bitcoin Treasury Stocks Trade Above Their Bitcoin NAV
Summary
The document explains why public companies that hold bitcoin can trade at substantial premiums to the value of their BTC per share. It defines the NAV premium and mNAV, then describes how public market access lets these firms raise equity and debt to buy more bitcoin. When shares trade above NAV, issuing stock can increase BTC per diluted share, reinforcing demand for the equity as a leveraged bitcoin proxy. The article uses Strategy and a comparison of selected companies to illustrate the financing model and the wide range of premiums reported at the end of June 2025.
It also discusses bitcoin yield as a measure of BTC growth per diluted share and contrasts companies’ approaches to transparency, including proof of reserves. The central caveat is that the model depends on a sustained premium: near NAV, new equity can dilute BTC exposure, weakening the cycle of capital raising, accumulation, and investor enthusiasm. The analysis is a dated market commentary, not a valuation model or proof that premiums will persist; its figures and claims reflect the stated date and market conditions.
Key ideas
- Publicly traded bitcoin treasury firms can issue debt and equity to expand their BTC holdings.
- Equity issuance above NAV can increase bitcoin held per diluted share.
- Bitcoin yield tracks the change in BTC per diluted share over a period.
- Premiums reflect expectations about financing access and future accumulation as well as current BTC holdings.
- If a stock trades near NAV, new equity issuance may dilute rather than increase BTC exposure.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.