02Claims & Capital Structure
What ranks ahead of common equity, and how those obligations are measured and netted.
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 Senior Claims % on common equity. See the Net Senior Claims entry below.
Analyze capital structure →The obligations ranking senior to common equity, converted to Bitcoin terms and netted against cash reserves held on the balance sheet.
Formula: Net Senior Claims in BTC = max(0, (Debt + Preferred Stock − Cash − STRC Holdings) / BTC Price + BTC-Indexed Claims)
The construction converts the balance sheet to BTC and nets the results. Fiat claims convert at the snapshot's own BTC price. STRC holdings net the same way cash does, as a cash equivalent. BTC-indexed claims enter as BTC directly and never touch the price. The floor at zero applies to the netted total, not to any single bucket, so an issuer holding more cash than fiat claims uses the surplus to offset its BTC-indexed claims.
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 Senior Claims % on common equity.
Analyze capital structure →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 in BTC = max(0, (Debt + Preferred Stock − Cash − STRC Holdings) / BTC Price + BTC-Indexed Claims). Fiat claims convert at the snapshot's own BTC price, STRC holdings net as a cash equivalent, BTC-indexed claims enter as BTC directly, and the zero floor applies to the total, not to any single bucket. See Net Senior Claims for the full construction. A company with 10,000 BTC and 3,000 BTC worth of net senior claims has 30% Claims %.
Explore in tracker →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%.
Check ownership →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.
The word survives in two places. Drag Curves is the published name of a modeler surface. And it appears in older articles written before the rename, where it means Senior Claims %. Everywhere a figure, a label, or a formula is involved, the term is Senior Claims %.
Track Claims % →A debt instrument that can convert into common shares at a predetermined price.
For Bitcoin treasury companies, convertibles are a primary source of senior claims because the conversion creates dilution that reduces per-share Bitcoin exposure.
Learn more →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.
See preferred analysis →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).
See capital structure →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.
See preferred tiers →03Valuation & Comparators
Premium and discount measures, plus the per-share benchmarks the CEBE framework is measured against.
The time it takes for the per-share growth that reaches common equity to compound away the premium over what common equity owns, at the stated recent pace. Output in years.
Formula: CEBE Payback = log(CEBE mNAV) / (n × log(1 + CEBE Sats Yield per period)), where n is the number of periods per year.
The window is part of the number, so every use states the yield period, for example "at the trailing 4-quarter pace". It is a cycle-class metric, under the same rule as Cycle mNAV.
Projecting the recent pace forward is a stated assumption, not a measurement.
Adapts the P/BYD ratio (Jesse Myers, SWC Research, July 2025) with both legs claims-aware. For a treasury with zero senior claims the two are identical.
See also: CEBE mNAV · CEBE Sats Yield · CEBE Implied P/E, the simple-ratio sibling; Payback is the compounding form of the same question.
The decomposition of a period's stock return into the framework's moving parts. It follows from the identity Stock Price = CEBE mNAV × CEBE × BTC Price, so any period's return splits into four multiplicative factors.
BTC is the Bitcoin price ratio over the period. Compression is the CEBE change produced by the price moving through the claim stack at constant structure, with the balance sheet and the share count held at their opening values. Engine is the remaining CEBE change, which captures execution, deals, and dilution. Re-rate is the CEBE mNAV change, computed as the exact-multiplication residual so the four factors multiply exactly to the stock return.
The split of the CEBE change into Compression and Engine follows the Compression-first ordering ruled 2026-07-31, so any interaction between a capital action and the price move lands on Engine, the leg that measures actions. The four factors carry the order BTC, Compression, Engine, Re-rate, which sorts them by how much control the issuer had over each. BTC is passive, the price of the asset itself. Compression is passive within the window and chosen before it, since the price is moving through a claim stack the company built in prior periods. Engine is active, the part of the window that required a decision. Re-rate is reactive, the market changing what it pays for the residual. The taxonomy was introduced with the specification launch.
Return Attribution is a mechanics-layer construction, deterministic once the two snapshots are fixed. It is backward-looking only. Any forward use is a scenario, and the assumptions belong to whoever states them. Third-party tools applied the identity forward before this entry formalized it.
See also: Return Attribution specification v1, the ratified definitions · CEBE mNAV · CEBE Sats Yield · Claims Compression / Ownership Acceleration, Compression is that mechanism measured per period.
The comparison of two percent changes over one period at one price basis: the movement in gross Bitcoin per share against the movement in CEBE. The gross leg measures what the accumulation program added to the reserve per share of a diluted count, with no senior claim netted. The CEBE leg measures what reached common equity per basic share after the whole stack was served.
It renders as percent changes only and never as per-share levels. It is the sole conforming presentation for gross-basis movement, since the gross figure never appears as a level or as a labeled row. Because the two legs rest on different numerators and different denominators, their levels are not commensurable, and only the rates of change compare, struck over the same window at the same Bitcoin price basis.
Ratified in the CEBE Tracker Panel Standard v1.7, section 4.6.
See also: CEBE Sats Yield · FD BPS · BTC Yield
A family name for the prices at which one capital action stops being the better use of a treasury dollar and another starts. Three members are defined today.
The moving accretion threshold is the multiple a share has to clear before issuing it adds to per-share exposure. It drifts with the capital structure under any construction that leaves senior claims out of the denominator, and it sits fixed at parity under any construction that nets them. The retirement crossover is where retiring a senior claim and repurchasing common change ranking against each other, and it recomputes with the Bitcoin price and the claim stack rather than sitting at a constant. The par-cost crossover is where a claim's market price crosses its stated face, the point at which retiring that claim stops transferring value to common equity and starts costing it.
Each member is a price, each moves on its own inputs, and the family name exists so that they are not read as one number.
See also: Accretive / Dilutive · CEBE mNAV · Liquidation Preference
See the crossover →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.
See the comparison table →The BTC price where Claims % reaches 100% and CEBE reaches zero.
Formula: Break-Even = Net Senior Claims (USD) / Total BTC
It is a balance-sheet level, independent of the stock price, and it does not exist for a company whose entire claim stack is BTC-denominated (renders as a dash).
See also: Safety Margin
Calculate yours →The cushion between the current BTC price and the level where senior claims consume the reserve.
Formula: Safety Margin = (BTC Price − Break-Even) / Break-Even
See also: Break-Even BTC Price
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 %.
See CEBE vs FD BPS →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.
See CEBE vs BPS →Bitcoin Per Share Yield
The same construction the issuers publish under their own name, BTC Yield. The percentage change in Bitcoin per diluted share over a period, computed on gross Bitcoin per share before any senior claim is netted.
See BTC Yield for the issuer's stated definition and the framework counterpart.
04Risk & Dynamics
How capital structure cost, leverage, and Bitcoin price paths change the picture over time.
The multiplier on common equity's Bitcoin exposure. Formula: (1 − Indexed Claims %) / (1 − Senior Claims %), with claims net of cash and Senior Claims % taken unfloored. For a fiat-only issuer, Indexed Claims % is zero and this reduces to 1 / (1 − Senior Claims %): at 40% Claims, amplification is 1.67x.
Above 1.0 it amplifies, below 1.0 it dampens. A company at 50% Senior Claims % delivers 2x the BTC move to common equity holders. An issuer holding more cash than claims sits below 1.0 and moves less than one for one, because the cash does not appreciate with Bitcoin. A BTC-denominated claim never compresses, so it takes its share at every price and pulls the multiplier down; that is the Indexed Claims % term. Amplification is undefined once senior claims reach the whole treasury, since common equity owns no Bitcoin to multiply.
Issuer-reported amplification has typically been built on gross claims, with no cash offset, and runs higher. Announced 23 July 2026 and effective 24 July 2026, Strategy's redefined Amplification nets its USD Reserve. CEBE Amplification nets the reserve, per the cash-netting rule.
See amplification curves →Two names for the same price-driven mechanism. Because senior claims are typically fixed in fiat terms, rising BTC compresses those claims in BTC terms, and common equity's share of the reserve accelerates. Claims Compression is the analytics name, describing the claims shrinking. Ownership Acceleration is the narrative name, describing the common share growing.
Distinct from CEBE Velocity, which measures realized momentum from all causes. Ownership Acceleration names the price-compression mechanism specifically.
The ownership acceleration reframe was coined by Adam Livingston (@AdamBLiv).
See also: CEBE Velocity
Track this metric →The term contributed to a period's stock return by the claims stack repricing in BTC terms. It sits in the return decomposition Stock Return = BTC move × claims factor × re-rate.
The factor is signed by nature. It reads as compression when claims shrink relative to the treasury, adding return on top of the BTC move, and as expansion when they grow relative to the treasury, subtracting from it. The same stack produces both readings depending on which way the ratio moves.
See also: CEBE Amplification · Claims Compression / Ownership Acceleration · CEBE Uplift · Return Attribution
The positive face of the claims factor. When rising Bitcoin compresses fiat-denominated senior claims in BTC terms, the claims factor contributes return above the BTC move itself, and that contribution is the uplift.
The inversion travels with the term. The same force is the largest negative contributor in a drawdown, when falling Bitcoin expands the claims stack in BTC terms and the factor turns against common.
Term coined by Adam Livingston (@AdamBLiv).
See also: Claims Factor · CEBE Amplification · Claims Compression / Ownership Acceleration
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 Claims % reduction and amplifies CEBE growth relative to USD-denominated peers.
See compression dynamics →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.
See wrapper analysis →How many months the company's liquid resources carry its fixed obligations to the senior stack, with no assistance from the common assumed: no issuance, no asset sales, no refinancing.
Coverage resources are cash and equivalents, short-term investments, and held treasury securities at fair value on a stated reachability basis, less restricted and encumbered amounts. Bitcoin is not among them, because selling it is an asset sale. The run-rate is the annual cash the stack contractually requires at the rates then in force, counting cash-settled preferred dividends and cash interest on debt, plus recurring cash fees and declared unpaid arrears.
Formula: Wrapper Coverage = coverage resources ÷ (run-rate ÷ 12), output in months, on a twelve-month annualization window stated with every figure.
Principal maturities are excluded by construction, because a maturity is a dated event and a run-rate is a rate, and the mandatory maturity ladder carries them beside the figure instead. It is a point-in-time measurement on snapshot canon, not a forecast and not a countdown.
See also: Wrapper · Cash Runway · Senior Claims
See coverage analysis →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.
Superseded on company pages by Wrapper Coverage as each issuer clears verification.
See coverage analysis →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.
See dilution modeling →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 RBTC − RUSD 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.
Explore the framework →The CEBE Modeler's projection of how a company's CEBE, Claims %, and mNAV evolve under different Bitcoin price paths and capital structure scenarios.
Run scenarios →05Transaction & Accretion
Whether each raise added or subtracted CEBE per share, and the forces that move it.
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.
See the Deal Ledger →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.
See the Receipts page →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 →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 →The rate of CEBE per share growth an issuer can carry from the structure and resources already in place, without assuming a premium it has not earned or a financing window that has not opened.
It separates the part of a realized CEBE Sats Yield that rests on conditions the company controls from the part that rests on conditions the market granted, and it is stated as a rate over a named window on the same basis as the yield it is derived from. Any figure quoted under it carries the assumptions that produced it, and those assumptions belong to whoever states them.
See also: CEBE Sats Yield · CEBE Velocity
What a period produced for common equity in sats, less the sats cost of the senior capital that stood behind the production over the same period.
Where CEBE Per Share Accretion states the output, Economic Profit in Sats states the output net of what the structure charged to generate it, both legs in the same unit so the comparison needs no currency. A period can add sats per share and still return a negative economic profit when the wrapper cost more than the engine produced.
Lineage: adapts residual income, the long-standing accounting construction that subtracts a charge for capital employed from reported output, restated with sats as the unit of account.
See also: CEBE Per Share Accretion · Wrapper · The Spread
Three descriptions of where an issuer's Bitcoin comes from.
A financing-accumulator adds reserve mainly by issuing securities and converting the proceeds into Bitcoin, so its accumulation pace tracks its access to capital markets. A production-accumulator adds reserve mainly by producing Bitcoin directly, so its pace tracks hash rate, energy cost, and network difficulty. An operations-accumulator adds reserve mainly by converting operating cash flow from a business that does not itself produce Bitcoin, so its pace tracks that business.
The modes describe where the sats came from. An issuer can sit in more than one at once, or move between them across periods.
See also: CEBE Velocity · Financing Torque
06Grade & Provenance
How a claim is characterized once it has been counted, and how every figure on the site declares where it came from.
A letter grade assigned to a single senior instrument, then rolled up to a company grade. Each instrument is scored on four dimensions, Permanence, Moneyness, Downside behavior, and Cost profile, at zero to three points each, and the sum maps to a letter that carries a stated word: Minimal, Moderate, Elevated, or Critical.
One categorical override sits outside the arithmetic. An instrument carrying a forced-liquidation or covenant-acceleration right against the Bitcoin grades Critical regardless of its other scores. Because one dimension moves with the stock price, a grade is as dynamic as Senior Claims %, and every published grade carries its date, its Bitcoin price, and its stock price.
A Claims Grade is not a credit rating. A credit rating scores an issuer's ability to repay its creditors, and a Claims Grade scores the structural weight those same claims place on common equity, so one instrument can carry a strong credit rating and a heavy Claims Grade at once.
See also: Permanence · Moneyness · Downside behavior · Cost profile
The full rubric → See live grades →The first Claims Grade dimension. It asks whether the claim ever goes away.
A self-extinguishing claim, a convertible with conversion events occurring or a Bitcoin-denominated convert moving through a tranche staircase, scores zero. A maturing claim with a defined date, repayable or refinanceable when it arrives, scores one. A perpetual but managed claim, callable or redeemable at the company's option or carrying a rate that adjusts to hold it near par, scores two. A perpetual fixture with no economic call, no conversion path, and cumulative dividends scores three. Lower is lighter on common equity.
See the schedule →The second Claims Grade dimension. It asks how close the exit through conversion is, measured as stock price divided by conversion price at grading time.
Deep in the money, at or above one hundred thirty percent of the conversion price, scores zero, and the claim behaves as equity. In the money, between one hundred and one hundred thirty percent, scores one. Out of the money but within reach, between seventy and one hundred percent, scores two. Deep out of the money, below seventy percent, scores three, and the claim behaves as debt to be settled from the treasury.
A non-convertible instrument inherits its Permanence score here, because its lack of an exit is already counted once. Moneyness is the dimension that moves with the stock price, which is why a grade carries its date and its prices.
See the bands →The third Claims Grade dimension. It asks what happens in a crash.
A Bitcoin-denominated claim scores zero, since its Senior Claims % is static across every price and responds only to discrete conversion events. Standard fiat expansion with no trigger scores one. Fiat expansion plus a treadmill scores two, which is cumulative dividends compounding through the drawdown, or an out-of-the-money claim whose cash maturity falls inside the twelve-month stress window. Trigger risk scores three, meaning collateral-backed claims with forced liquidation rights, margin maintenance, or covenant acceleration that can force Bitcoin sales.
Currency denomination is recorded as a flag rather than a score. The maturity term is read through Moneyness, so an in-the-money convert's maturity contributes nothing.
See the schedule →The fourth Claims Grade dimension. It asks what the claim draws from common equity each year.
A zero-coupon claim with no cash cost scores zero. A coupon under five percent, or any rate payable in shares at the company's option, scores one, since dilution is a cost with flexibility in it. A coupon between five and nine percent, cash only, scores two. A coupon of nine percent or more cash only, or any cumulative rate that compounds when unpaid, scores three.
See the schedule →The two provenance flags that travel with every figure on the site. VERIFIED means each input traces to a primary filing, cited in the verification record. EST means at least one input is estimated, and the flag names the field carrying the estimate.
A figure inherits the weaker flag of its inputs, so one estimated component makes the whole figure EST, and the flag renders with the figure rather than in a footnote. Where an issuer has not cleared verification on a fleet surface, the cell reads "not yet verified" rather than sitting empty, because an empty cell in a numeric column reads as a low value or a zero.
See data standards →The name of the page family carrying the Adjusted Claims layer, where every claim renders twice, at face and at the market's price for it, and MABE renders beside CEBE on the same snapshot and the same Bitcoin price.
See also: MABE · CEBE per share
See the stack →07Issuer Vocabulary
Metric names as the companies publish them, located rather than graded. Each entry states the issuer's own construction and closes with the framework object nearest to it. Nothing here is a CEBE figure, and no figure from these constructions appears inside a CEBE panel.
Company-reported. The percentage change, period over period, in the ratio between an issuer's Bitcoin holdings and its Assumed Diluted Shares Outstanding, per the issuer's stated key performance indicator definition.
Both legs of the ratio are gross. The numerator is total holdings with no senior claim netted against it, and the denominator is a diluted count. The construction therefore measures the gross leg alone, and the issuers' own KPI footnotes state that it does not account for debt and other liabilities and claims on company assets that would be senior to common equity.
Company-reported yield figures do not appear inside CEBE panels. A panel states one construction on one basis, and placing a gross-leg figure beside a claims-netted figure in the same register invites the two to be read as comparable levels when they are two different measurements.
Framework counterpart: CEBE Sats Yield, the rate that reaches common equity after the whole senior stack is served.
See also: CEBE Sats Yield · Assumed Diluted Shares Outstanding · Basis Divergence
Company-reported. Total Bitcoin holdings divided by a share count, expressed in satoshis. The numerator is the gross reserve, with no senior claim subtracted, and the share count is the issuer's chosen diluted construction.
Convertible debt reaches the figure through the denominator as potential shares while its face value does not reach the numerator as a claim, so a convertible instrument is counted once as dilution and not counted as an obligation.
Framework counterpart: CEBE, which subtracts net senior claims from the same reserve and divides by basic shares. The framework also carries two gross comparators for reference, FD BPS and Basic BPS, which differ from each other only in the share count.
See also: CEBE per share · FD BPS · Basic BPS
Company-reported. Basic shares outstanding plus the shares that pending issuances are deemed to produce: outstanding stock options, restricted and performance stock units, and convertible instruments taken at their stated conversion terms.
It is the denominator behind BTC Yield, and it is defined in the issuer's own filed key-performance-indicator table, where it carries the issuer's stated caveat that the definition may be subject to adjustment.
Framework counterpart: basic shares outstanding, which the framework uses as the CEBE denominator. The methodology page states the per-share constructions the sector uses and what each one counts.
The constructions →Company-reported, introduced July 2026. Net BTC is holdings reduced by the notional amount of out-of-the-money convertible notes and other debt-like instruments, plus the notional amount of outstanding perpetual preferred excluding any in-the-money convertible preferred, less the USD Reserve. Net Reserve is the same construction carried in dollars. Net BPS is Net BTC over Fully Diluted Shares Outstanding, reported in sats and in dollars.
The suite is an either-state-coherent partition. Each instrument is placed by moneyness and counted exactly once: an in-the-money convertible enters the share count and leaves the claim line, and an out-of-the-money convertible stays in the claim line at notional and stays out of the share count. Nothing is counted twice and nothing is dropped. The placement is struck against a market price at a measurement time, so it can move without the capital structure moving.
Framework counterpart: CEBE. Given the same instrument figures the two numerators agree, and one construction difference survives: the issuer deducts preferred at notional, and the framework carries preferred at accrued liquidation preference. The issuer's own definition states that notional may not equal liquidation preference or redemption amount and that accrued and unpaid dividends are not included.
See also: CEBE per share · USD Reserve · mNAV
Company-reported. BTC Gain restates BTC Yield as a quantity: the Bitcoin an issuer would have added over a period had holdings grown at the reported yield on the opening share count. BTC $ Gain is the same quantity carried in dollars at a stated Bitcoin price.
Both are hypothetical-holdings expressions of the same underlying yield rather than separate measurements, so both inherit the gross construction of the leg they restate. Period figures do not sum across periods by construction, since each period's figure is struck against that period's own opening base.
Framework counterpart: CEBE Per Share Accretion, the flow stated per share and net of the senior stack.
See also: BTC Yield · CEBE Per Share Accretion
Company-reported, introduced July 2026. Three annualized Bitcoin rates of return, each answering a different question about the same credit structure, and each carrying a sign that is part of the figure.
Every figure carries its sign, and the sign is not decoration. A positive hurdle and a negative floor are different objects that can share digits. A hurdle stated as a positive rate names a return the reserve has to reach. A floor stated as a negative rate names a decline the structure can absorb before the stated coverage condition fails. Two figures printed as the same digits with opposite signs describe opposite conditions, so a figure quoted without its sign is not readable.
BTC Floor ARR is defined by the issuer as the lowest constant Bitcoin annualized rate of return, over the weighted average duration of the credit structure, that maintains one times coverage of net debt and preferred through the Bitcoin reserve after funding interest expense and preferred dividends over the period. The duration methodology for perpetual preferred instruments is not stated in the published definitions.
Framework counterpart: no direct equivalent, because each of the three embeds a duration assumption. The nearest framework object is Break-Even BTC Price, a balance-sheet level that involves no duration and no rate of return.
See also: Break-Even BTC Price · Safety Margin
Company-reported, redefined July 2026. The ratio of the Bitcoin reserve to the net reserve, assuming conversion of in-the-money convertible debt and preferred followed immediately by a hypothetical liquidation in which preferred liquidation preferences are taken at notional.
The issuer's own definition states that an increase in the Bitcoin price reduces the figure and a decrease increases it, and that figures calculated before the redefinition date are not comparable to figures calculated after it.
The word has a dual life. It is the issuer's name for the ratio above, and it is the toolkit's name for the multiplier on common equity's Bitcoin exposure. The two constructions are close and are not the same object, so a figure quoted under the word carries meaning only with its construction stated.
Framework counterpart: CEBE Amplification, which nets cash and reads BTC-indexed claims separately.
See also: CEBE Amplification · Net BPS, Net BTC, Net Reserve
Company-reported. A stated dollar pool designated by the issuer as standing behind its preferred dividend obligations. It enters the issuer's net constructions as an add-back after debt and preferred are deducted, and it enters the issuer's net leverage ratio as a deduction from debt.
A designation of this kind is a statement by the company about what it holds against the stack. It is not a lien and it carries no priority against any other creditor.
Framework counterpart: cash, which the framework nets against senior claims before converting them to Bitcoin. It is the same operation written in the other direction. Where an issuer publishes a designation, the Wrapper Coverage construction renders it as a separate labeled line rather than as the headline numerator.
See also: Net Senior Claims · Wrapper Coverage
Company-reported. A coverage-style ratio for the credit seat: the value of the Bitcoin reserve divided by senior claims.
The issuer's credit-tab disclaimer states that preferred stocks may have liquidation preferences greater than their notional values and that the ratio does not take this into account, being based solely on notional value.
Framework counterpart: Senior Claims %, which is the same ratio inverted and read from the equity seat, computed net of cash and with preferred carried at accrued liquidation preference.
See also: Senior Claims % · Liquidation Preference
See credit analytics →