A framework for measuring true shareholder exposure in Bitcoin Treasury Companies
Bitcoin Treasury Companies (BTCTCs) are often evaluated using BTC-per-share (BPS) — total Bitcoin holdings divided by shares outstanding. This metric is dangerously incomplete.
BPS ignores the capital structure. Before common shareholders see a single satoshi, the company must satisfy:
• Convertible debt — bonds that can convert to shares or must be repaid
• Preferred stock — senior equity with liquidation preferences
• Other liabilities — claims that rank above common equity
These "senior claims" eat into the Bitcoin stack before common shareholders get anything. BPS pretends they don't exist.
Common Equity Bitcoin Exposure (CEBE) answers a simple question:
If this company liquidated all its Bitcoin today, how many satoshis would each common share actually receive?
CEBE subtracts senior claims from the Bitcoin holdings, then divides by shares outstanding. It shows what common shareholders actually own — not the gross number, the net number.
Add up all claims that rank senior to common equity, then subtract cash (which offsets liabilities).
Net Claims = Debt + Preferred − Cash
Express senior claims in Bitcoin terms using the current (or snapshot) BTC price.
Claims (BTC) = Net Claims ÷ BTC Price
Subtract the BTC-denominated claims from total holdings. This is what's left for common shareholders.
Common Equity BTC = Total BTC − Claims BTC
Distribute the remaining Bitcoin across all common shares and convert to satoshis.
CEBE = (Common Equity BTC ÷ Shares) × 100,000,000
Measure what percentage of the Bitcoin stack is consumed by senior claims.
Drag = Claims BTC ÷ Total BTC
| Metric | What It Measures | Limitation |
|---|---|---|
| BPS | Gross BTC per share | Ignores capital structure entirely |
| CEBE | Net BTC per share (after claims) | Assumes instant liquidation |
| Drag | % of BTC eaten by senior claims | Point-in-time snapshot |
Here's where it gets interesting. Senior claims are denominated in USD, but the Bitcoin stack is denominated in BTC.
As BTC price rises:
• The USD value of claims stays constant (or grows slowly)
• The BTC value of claims shrinks relative to holdings
• Drag compresses
• CEBE grows faster than BPS
Drag compression is the mechanism by which Bitcoin appreciation flows disproportionately to common shareholders. The more leverage, the more dramatic the effect.
This is why a company with 25% drag at $100K BTC might have only 10% drag at $250K BTC — the claims haven't changed, but their Bitcoin-denominated weight has collapsed.
CEBE Tracker pulls data from official company filings:
• 8-K filings — Material events, Bitcoin purchase announcements
• 10-Q filings — Quarterly financial statements
• 10-K filings — Annual reports
• Earnings releases — Quarterly updates with current figures
We use the BTC price from the filing date (snapshot price) rather than live price to maintain consistency with reported figures.
CEBE is a useful heuristic, not a precise valuation:
• Assumes hypothetical liquidation (companies don't actually liquidate)
• Doesn't account for ongoing operations, revenue, or expenses
• Convertible terms vary — some debt converts at different prices
• Preferred stock may have complex redemption features
• Doesn't capture operational value or strategic premium
Use CEBE alongside other analysis. It's one lens, not the only lens.