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In the world of traditional finance, evaluating a company’s success often means tracking revenue growth, earnings per share, or return on equity. But what happens when the core of a company’s strategy is not selling products or services, but accumulating Bitcoin?
This is the problem facing a new Bitcoin Treasury company. These are publicly traded companies with a central task of long-term acquisitions and holdings of Bitcoin. To see if they succeed, we need a new set of tools.
This article introduces these tools – new key performance indicators (KPIs) designed to evaluate a company’s ability to execute Bitcoin strategies. Michael Saylor and his company strategy pioneered the launch of many of these metrics, which can be seen on the new dashboard. These new metrics may sound complex at first, but once broken down, they provide insight into whether Bitcoin finance companies are truly serving their shareholders.
1. BTC earnings: Measure accumulation, not income
What is: BTC yield tracks the percentage change in proportion to the company’s bitcoin holdings and the number of shares it completely diluted. In short: how much bitcoin per share owns.
Why it matters: The KPI is designed to answer a unique question: Does the company acquire Bitcoin in the form of a beneficial shareholder?
Suppose a company holds 10,000 BTC and owns 100 million shares. This is 0.1 BTC per share. If one year later, it holds 12,000 BTC and owns 105 million shares, it now holds about 0.114 BTC per share, an increase of 14%. That’s 14% of your BTC production.
What makes it unique: BTC yields don’t care about profit margins or EBITDA. Its focus is on the effectiveness of the company’s ownership of Bitcoin relative to the number of shares that may exist. This is the key to a strategy involving the use of equity to purchase BTC. If management is printing new shares to buy Bitcoin, shareholders want to know: Is Bitcoin rising or falling per share?
How to use it: Investors can track BTC yields over time to see if dilution (more stocks) are offset by value-added Bitcoin purchases (more BTC). BTC’s consistently rising earnings show that it is well managed.
2. BTC Gain: A Growth Metric Based on Bitcoin
What is: BTC earnings earnings are BTC yields and are applied to the company’s starting bitcoin balance for a period of time. It tells you how many theoretical “extra” bitcoins the company has effectively added through value-added behavior.
Why it matters: This is a way to visualize BTC production, not Bitcoin itself. If the BTC yield for the quarter is 5%, and the company starts at 10,000 BTC at 10,000 BTC, the BTC earnings are 500 BTC.
What makes it unique: It can help you think in the Bitcoin way, which is aligned with the company’s long-term goals. Shareholders should not only pay attention to more BTC, but also hope for more BTC per share. BTC earnings help quantify how much BTC the company will have if it starts from scratch and acquires increased holdings.
How to use it: BTC gain is particularly useful when comparing different time periods. If a quarter shows a 200 BTC gain and the next shows a 800 BTC gain, then you know that the company’s Bitcoin strategy has a much greater impact in the second phase, even if the BTC price remains flat.
3. BTC$ Gain: Bring Bitcoin Income to USD Terms
What is: BTC $gain converts the gains of BTC into USD, multiplying it by the price of Bitcoin at the end of the period.
Why it matters: Investors still live in a Fiat-dominated world. Converting Bitcoin-based growth to USD terms helps bridge the communication gap between Bitcoin’s local strategy and traditional shareholder expectations.
What makes it unique: This metric provides a hybrid lens – a growth based on the perspective of FIAT, with bitcoin counts as the main body. But even if the actual value of the company’s holdings falls (because the indicator is based on stock adjusted accumulation, rather than fair market value accounting), this is the harvest: BTC$ gain can show positive numbers.
How to use it: Use this metric to bring the value (in USD) context of the company’s Bitcoin acquisition strategy that may be created over a period of time, it’s just remember that this is not a profit measure. This reflects growth in danger, not accounting gains or losses.
4. Bitcoin NAV: Snapshots of original Bitcoin holdings
What is: Bitcoin NAV (Net Asset Value) is the market value of the company’s Bitcoin holdings. Simply calculate: Bitcoin price × Bitcoin number.
Why it matters: It provides a simple and simple snapshot of the company’s Bitcoin “battlebox”.
What makes it unique: Unlike traditional NAVs used in mutual funds or ETFs, this version ignores liabilities such as debt or preferred stocks. This is not to tell you what shareholders will get in liquidation. Instead, just: How much bitcoins does the company own and what is worth it now?
How to use it: Use Bitcoin NAV to understand the scale of the company’s Bitcoin strategy. Rising NAV can reflect more bitcoins, higher prices or both. But remember: it is not adjusted for debt or financial obligations, so it is not the whole situation of shareholder value.
5. BTC rating: Leverage checks that you don’t have to guess
What is: BTC ratings are a simple ratio: the market value of a company’s Bitcoin divided by its total financial obligations. It shows how much debt and liabilities a company can cover for a company’s Bitcoin holdings.
Why it matters: This metric provides a local snapshot of Bitcoin’s balance sheet strength. It can help investors quickly measure whether a company’s Bitcoin strategy is supported by a voice capital structure or is reduced by obligations.
What makes it unique: Unlike traditional credit ratings that rely on opacity models and institutional trust, BTC ratings are transparent and verifiable. The inputs – percentage holdings and liabilities – are open. It makes solvency frankly invisible without the permission or advice of anyone.
How to use it: The BTC rating is above 1.0, indicating that the company’s Bitcoin position exceeds its obligations, which is a powerful indicator of strategic flexibility and solvency. Ratings below 1.0 may be oversigned or exposed to refinancing risks. Watching how the ratio evolves over time provides investors with a powerful lens to evaluate whether a company’s Bitcoin-first strategy is executed responsibly.
Why are these indicators together
Each KPI gives a different shot:
- BTC production Showcase the growth faced by shareholders.
- BTC Gain Convert it to BTC terminology.
- BTC $Gain Invest in US dollars.
- Bitcoin Navigation Shows the original Bitcoin value.
- BTC grade Test how that value can resist liabilities.
Together, they provide investors with a comprehensive understanding of whether the Bitcoin Treasury is:
- Increase shares effectively
- Protect or enhance shareholder value
- Properly manage risks
Last note: These indicators are not perfect
These KPIs are not traditional financial indicators, nor are they going to become traditional financial indicators. They ignore things like operating income, cash flow and even debt service costs. They also assume that convertible debt will be converted instead of mature.
In other words, they are tools designed to isolate Bitcoin Strategynot the entire business. That’s why they should be used beside Company’s financial statements – not a substitute.
But for investors trying to understand whether a company is making a wise move in the Bitcoin arena, these metrics provide traditional tools that cannot be: a clear understanding of whether management uses equity and capital in a way that is actually Bitcoin per share.
In a Bitcoin-first world, this is probably the most important indicator of all.
Disclaimer: This content was written for the company on behalf of Bitcoin. This article is for informational purposes only and should not be construed as an invitation or invitation to obtain, purchase or subscribe to securities.