Question 1

How do I allocate capital across Bitcoin Treasury Companies in the CEBE framework?

Accepted Answer

Enter dollar amounts or share counts in each company card. The Allocator computes your portfolio's CEBE-weighted return at any BTC price, weighting each position by its capital structure and common equity claim. Watch your portfolio value curve restack across the full BTC price spectrum.

Question 2

What is diversification cost in the Allocator?

Accepted Answer

Diversification cost is the gap between your blended portfolio return and the return of the single best-performing name at that price. A positive gap means you paid a return penalty for spreading capital. A negative gap (negative cost) means your blend beats any single concentration — diversification is paying at that price point.

Question 3

What does 'drag' mean in the Allocator rank table?

Accepted Answer

Drag is the CEBE headwind each position faces at the pin price. It reflects how much the company's capital structure (debt, preferred, cash vs. BTC) discounts the return relative to naked BTC exposure. Higher drag means more of the move in BTC price is consumed by the capital stack before it reaches common shareholders.

The Allocator - Portfolio Return Curves for Bitcoin Treasury Companies