Question 1

What is the break-even BTC price for a Bitcoin Treasury Company transaction?

Accepted Answer

The break-even BTC price is where a transaction shifts from dilutive to accretive for common shareholders. Below the break-even, the deal costs more in sats per share than it adds; above it, the deal adds net CEBE. The Decision Lab visualizes this crossing point as an interactive payoff curve.

Question 2

How does CEBE change when a Bitcoin Treasury Company issues preferred stock or convertible notes?

Accepted Answer

When a company issues fiat-denominated claims (preferred stock, convertible notes, debt) and uses the proceeds to buy BTC, the effect on CEBE depends on BTC price. At low prices, the fiat claims consume more of the BTC stack (higher drag), making the deal dilutive. At high prices, the BTC bought outweighs the fiat claims (drag compresses), making it accretive. BTC-denominated claims behave differently: they produce a constant offset regardless of price.

Question 3

What is the difference between BTC-denominated and fiat-denominated claims?

Accepted Answer

Fiat-denominated claims (USD, EUR, JPY debt/preferred) compress in BTC terms as BTC price rises, creating the characteristic payoff curve with a break-even crossing. BTC-denominated claims hold constant drag regardless of price, producing parallel CEBE curves with a static offset. This structural difference is fundamental to evaluating Bitcoin Treasury Company capital decisions.

The Decision Lab - Bitcoin Treasury Transaction Payoff Curves | CEBE Tracker

Drag a deal acrossthe price of money.

Drag a deal across
the price of money.