CEBE
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.
See it in action →Drag
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% drag.
Explore in tracker →Drag Compression
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.
Track this metric →CEBE Velocity
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.
See it in action →Financing Torque
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).
See it in action →mNAV
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.
Run scenarios →BPS Yield
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.
View KPI analysis →Equity Owns
The percentage of a company's total Bitcoin that is economically owned by common equity holders.
Equals (1 -- Drag). If drag is 30%, equity owns 70%.
Check ownership →Senior Claims
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.
Analyze capital structure →Net Senior Claims
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.
Analyze capital structure →Convertible Note
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.
Learn more →Break-Even BTC Price
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.
Calculate yours →Forward Simulation
The CEBE Modeler's projection of how a company's CEBE, drag, and mNAV evolve under different Bitcoin price paths and capital structure scenarios.
Run scenarios →