Glossary

Common Equity Bitcoin Exposure

The amount of Bitcoin economically attributable to each common share after accounting for all senior claims (convertible notes, preferred equity, warrants). Unlike BPS (Bitcoin Per Share), CEBE subtracts the Bitcoin value consumed by senior obligations before dividing by share count.

The net Bitcoin (sats) per share a treasury company earns for common shareholders over a period. It is the closest analog to earnings per share (EPS), expressed in Bitcoin terms, and it is a flow rather than a balance. Where CEBE per share is the level (book value to common, in BTC), CEBE Per Share Accretion is the change in that level, what the accumulation engine produced for common this period.

Because it is built on CEBE per share, net of all senior claims, it nets the stack the way EPS nets interest and preferred. Gross BTC-per-share growth does not, which is why gross per-share figures overstate what reaches common.

Formula: CEBE Per Share Accretion = CEBE Sats Yield × CEBE per share. It is the "E" inside the multiple, since CEBE Implied P/E = Price per share ÷ CEBE Per Share Accretion. A company at 10,000 sats per share growing at a 40.6% sats yield earns about 4,060 sats per share that period; at 2× CEBE mNAV that is roughly 4.9 years of output, the CEBE Implied P/E.

Note: this is value accretion to common, broader than operating EPS, since it captures capital-markets accretion, not just operating income. Measured on verified, realized output, like a trailing P/E.

See also: CEBE per share · CEBE Sats Yield · CEBE Implied P/E

The rate at which a treasury company grows the common Bitcoin residual per share over a period. It is CEBE Per Share Accretion stated as a rate, the period's net sats per share divided by the per-share base it grew from. The closest analog to earnings yield or return on common equity, expressed in Bitcoin terms.

Because it is built on CEBE per share, net of all senior claims, it measures what compounds for common after the stack is served. Company-reported BTC Yield is computed on gross Bitcoin per share before any claims are netted, so the two answer different questions. BTC Yield is the gross growth rate; CEBE Sats Yield is the rate that reaches common.

Formula: CEBE Sats Yield = CEBE Per Share Accretion ÷ CEBE per share. It is the rate term inside the multiple, since CEBE Implied P/E = CEBE mNAV ÷ CEBE Sats Yield. Measured on verified, realized output, like a trailing yield.

See also: CEBE per share · CEBE Per Share Accretion · CEBE Implied P/E

CEBE mNAV divided by CEBE Sats Yield. The implied multiple paid on the accumulation engine: how many years of verified annual BTC/share output you are paying for at the current premium.

Formula: CEBE Implied P/E = CEBE mNAV / CEBE Sats Yield. A BTCTC at 2x CEBE mNAV with a 40.6% sats yield carries a CEBE Implied P/E of roughly 4.9x, comparable to an equity P/E ratio.

Financial obligations that have priority over common equity in a company's capital structure.

Includes convertible notes, preferred stock, and warrants. These claims reduce the Bitcoin economically available to common shareholders.

In CEBE calculations, the relevant figure is Net Senior Claims, which subtracts cash reserves from total senior claim value. Cash offsets fiat obligations on a point-in-time balance sheet basis, reducing the effective drag on common equity. See the Net Senior Claims entry below.

The total dollar value of obligations ranking senior to common equity, minus cash reserves held on the balance sheet.

Formula: Net Senior Claims = Debt + Preferred Stock − Cash

This is the figure used throughout the CEBE framework. Cash is treated as an offset to senior claims because it can be deployed to retire or service those claims on a point-in-time basis. Gross senior claims (without the cash offset) overstate the effective drag on common equity.

When converted to Bitcoin terms for the CEBE calculation: Net Senior Claims in BTC = Net Senior Claims (USD) / BTC Price.

The percentage of a company's total Bitcoin holdings consumed by senior claims.

Calculated as (Net Senior Claims in BTC) / (Total BTC Holdings), where Net Senior Claims = (Debt + Preferred − Cash) / BTC Price. A company with 10,000 BTC and 3,000 BTC worth of net senior claims has 30% Claims %.

The percentage of a company's total Bitcoin that is economically owned by common equity holders.

Equals (1 - Claims %). If Claims % is 30%, equity owns 70%.

See Claims %. The original CEBE framework term for the percentage of Bitcoin committed to senior claims. Renamed to Claims % for clarity in labels and calculations.

Still used in narrative contexts: drag compression, Drag Curves, drag dynamics. When you see "drag" in an article, it means Claims %.

A debt instrument that can convert into common shares at a predetermined price.

For Bitcoin treasury companies, convertibles are a primary source of drag because the conversion creates dilution that reduces per-share Bitcoin exposure.

Preferred stock with no maturity date. The claim never expires. Dividends are the permanent cost to common equity as long as the shares are outstanding. Examples: STRF, STRC, STRD, STRE, SATA.

The dollar amount preferred stockholders receive before common shareholders get anything in a liquidation. Used at face value in CEBE calculations as part of the senior claims figure.

For most Bitcoin treasury preferred issuances, liquidation preference equals par value (e.g., $1,000 per share for STRK and STRF).

Cumulative preferred dividends accrue if missed and must be paid before common shareholders receive anything. Non-cumulative dividends are simply skipped. Cumulative is worse for common equity.

STRK, STRF, STRC, and STRE are cumulative. STRD is non-cumulative.

Market cap divided by common equity Bitcoin value. Shows whether the stock trades at a premium or discount to what common shareholders actually own. Above 1.0x is a premium. Below 1.0x is a discount.

CEBE mNAV uses the CEBE-adjusted Bitcoin value, not gross BTC holdings, so it reflects the capital structure cost that gross mNAV ignores.

Multiple to Net Asset Value

The ratio of a company's market capitalization to its net Bitcoin holdings (after subtracting senior claims). mNAV shows how much premium (or discount) the market assigns per dollar of net Bitcoin exposure.

CEBE mNAV adjusted for the annual wrapper cost over a full Bitcoin market cycle (2 years or 4 years). Accounts for the ongoing cost of the capital structure, not just the point-in-time snapshot.

A company trading at 1.0x CEBE mNAV today may trade at an effective premium once wrapper costs over the cycle are subtracted.

How many satoshis of real Bitcoin exposure a $100 investment buys, after accounting for Claims %. Calculated from CEBE and share price. The primary ranking metric on the homepage comparison table.

Higher sats/$100 means more Bitcoin per dollar invested after subtracting senior claims. Lower sats/$100 means the market is paying a premium to CEBE.

The Bitcoin price at which a company's CEBE equals its current stock price divided by BTC price.

Below this price, the market is pricing shares above their net Bitcoin value.

Bitcoin Per Share (Fully Diluted)

Total BTC holdings divided by the fully diluted share count, using the if-converted method for convertible notes and warrants. The industry-standard comparator reported in SEC 10-Q and 10-K filings. FD BPS is the baseline the CEBE framework measures Claims % against: the gap between FD BPS and CEBE is Claims %.

Total BTC divided by basic shares outstanding. The grossest overstatement of per-share exposure because it ignores both dilution from convertible instruments and senior claims. Nobody publishes it officially, but gross mNAV calculations implicitly use it.

Bitcoin Per Share Yield

Strategy's official KPI measuring the percentage change in Bitcoin per diluted share over time. CEBE framework argues this metric is incomplete because it ignores the cost of senior claims used to acquire that Bitcoin.

The leverage multiplier on BTC exposure for common equity. Formula: 1 / (1 - Claims %). At 40% Claims, amplification is 1.67x.

Amplification works in both directions: it magnifies gains when BTC rises and magnifies losses when BTC falls. A company at 50% Claims % delivers 2x the BTC move to common equity holders.

The reduction in drag over time as Bitcoin price rises. Because senior claims are typically fixed in fiat terms, their BTC-equivalent cost shrinks as BTC appreciates, reducing the drag on common shareholders.

When senior claims are denominated in a foreign currency that is also weakening against USD, two compression vectors operate simultaneously: BTC appreciation reduces the claim in BTC terms, and currency depreciation reduces it further in dollar terms.

Examples: Metaplanet (JPY) and H100 Group (SEK). Double compression accelerates drag reduction and amplifies CEBE growth relative to USD-denominated peers.

The total annual cost to common equity holders expressed as a percentage of the BTC reserve value. Includes preferred dividends, debt interest, SBC, and executive compensation, minus any revenue offsets.

A company with a 5% wrapper costs common shareholders 5% of its Bitcoin reserve value per year just to maintain the capital structure.

How long cash reserves can cover preferred dividend payments before the company must issue shares or sell BTC.

Formula: Cash / Annual Cash-Only Dividends. When runway reaches zero, all preferred dividends convert to share issuances, accelerating dilution.

Annual share dilution from preferred dividends paid in shares instead of cash. When cash runway reaches zero, all preferred dividends become share payments, accelerating dilution to common equity.

Lower stock prices mean more shares issued per dollar of dividend, which can create a reflexive feedback loop: more dilution suppresses the stock, which requires even more shares for the next payment.

The difference between BTC's growth rate and the weighted average cost of preferred capital. A positive spread means leverage works for common shareholders. A negative spread means it works against them.

Corresponds to Saylor's R_BTC − R_USD in the Digital Credit Amplification framework. The spread determines whether a Bitcoin treasury company's capital structure creates or destroys value for equity over time.

Collateral coverage ratio for credit investors. Formula: Total BTC Value / Senior Claims. Credit wants a high BTC Rating; equity wants a low Claims %. Same metric, opposite perspective.

A BTC Rating of 3.0x means the company holds three dollars of Bitcoin for every dollar of senior claims.

The CEBE Modeler's projection of how a company's CEBE, Claims %, and mNAV evolve under different Bitcoin price paths and capital structure scenarios.

Whether a share issuance increased (accretive) or decreased (dilutive) CEBE per share. Test: if the sats acquired per new share exceed the company's prior CEBE, the issuance was accretive.

Most BPS-based analyses use a weaker test that can label a dilutive raise as accretive when Claims % are high.

The BTC acquired per share issued in an ATM or equity offering. Benchmarked against existing CEBE (not FD BPS) to determine whether the raise was accretive or dilutive to common equity.

Using FD BPS as the benchmark sets too low a bar and can call a raise accretive even when existing common shareholders got a worse deal.

Where the stock price sits between CEBE (0) and FD BPS (1). A ratio near zero means the market is pricing common equity, not total company holdings. Used on the Receipts page to contextualize each transaction.

The rate at which a Bitcoin treasury company grows its CEBE per share through successive capital events. Smaller treasuries typically exhibit higher CEBE velocity because each financing round moves per-share economics more materially on a smaller base.

Term coined by Adam Livingston (@AdamBLiv) in his CEBE framework videos.

The structural advantage smaller Bitcoin treasury companies have in moving per-share economics: each raise represents a larger percentage of the existing base, producing larger moves in BTC per share and CEBE per share per capital event. Complements CEBE Velocity.

Term coined by Adam Livingston (@AdamBLiv).