You Already Know This
Let's make it easy.
Each term on the left is a close cousin of the CEBE term beside it, not a twin. The link on each row shows the exact definition.
| You know this | In CEBE | What it tells a shareholder |
|---|---|---|
| Book value per share | CEBE (sats per share) | The sats behind each basic share once debt and preferred, less cash, are counted ahead of it. Bitcoin only. |
| Bitcoin per share (BPS) | CEBE | BPS counts the bitcoin before the claims, usually over diluted shares. CEBE counts it after, over basic shares. |
| Price to book | CEBE mNAV | The share price against the value of the bitcoin behind the share. Above 1.0x is a premium. With an operating business, the price also covers the business. |
| Net debt | Net Senior Claims | The financing claims ahead of common: debt and converts at face, preferred at liquidation preference, less cash. Unlike net debt, preferred counts. |
| Net debt to assets | Senior Claims % | The share of the bitcoin spoken for before common shareholders. Where claims are fixed in fiat, it moves with bitcoin's price. |
| Financial leverage (assets over equity) | CEBE Amplification | How far the value of the bitcoin behind a common share moves, in percent, when bitcoin's price moves 1%. Above 1.0x it magnifies. Below, it dampens. |
| Break-even point | Break-even BTC price | The bitcoin price where the claims ahead of common equal all the bitcoin. It is a balance sheet level, not your purchase price. Some companies have none. |
| Margin of safety | Safety Margin | How far today's bitcoin price sits above break-even, as a percent of break-even. |
| Expense ratio | Wrapper | What common shareholders pay each year to carry the capital structure, as a percent of the whole bitcoin reserve, over a stated period. |
| Credit rating, from the other seat | Claims Grade | A credit rating asks whether the lender gets repaid. Claims Grade asks how heavily each claim sits on common shareholders. Scored per instrument, rolled up to a company letter. |
| Issuing above book | Accretive or dilutive | New shares add sats per share only when they sell for more than the value of the bitcoin behind each share. At market price, that means CEBE mNAV above 1.0x. |
| Earnings per share | CEBE Per Share Accretion | The sats per share added or lost over a period from what the company did and what the structure cost, with bitcoin's price effect measured separately. |
| Diluted shares | Basic shares | A convertible counts once: as a claim today, or as shares after it converts. Never both. |
Formulas and sources: /methodology/