If you want to understand how to evaluate a Bitcoin treasury company, forget the P/E ratio, EV/EBITDA and price-to-book. The metric that matters in this new paradigm has its own name: BTC Yield.
BTC Yield is defined as the percentage change in the Bitcoin-per-diluted-share ratio over a given period, usually a year or a quarter. In plain terms: it measures how much more Bitcoin each share of the company represents versus the prior period.
If a company holds 10,000 BTC with 1 million shares outstanding, its BTC per share is 0.01. If a year later it holds 15,000 BTC and 1.2 million shares (because it issued capital to buy more BTC), its BTC per share is 0.0125. The BTC Yield that period is 25%.
Why does this metric matter, rather than simply how many BTC the company holds? Because what's relevant to the shareholder is not the company's total Bitcoin, but how much of that Bitcoin belongs to them per share they own. A company can double its BTC holdings by issuing twice as many shares, and the shareholder would have gained nothing in Bitcoin-per-share terms.
Strategy has a BTC Yield of 74.3% annualised. That means if you're a Strategy shareholder, your implied Bitcoin exposure has grown 74.3% more than if you had simply bought Bitcoin directly. That spread is the value management is creating for you.
Metaplanet is the most extreme case. The Japanese company posted a BTC Yield of 310% in 2024. It started the year with almost no BTC per share and ended with one of the highest exposures in the sector. Share dilution was aggressive, but accumulated Bitcoin per share grew even faster.
The concept has its limits. If Bitcoin's price falls in a sustained way while the company keeps issuing capital to buy, BTC Yield can be positive while the dollar value of the shareholder's holdings sinks. That is why this metric works best as a complement to traditional analysis, not a substitute.
What is undeniable is that BTC Yield has introduced a new logic into company valuation. For the first time, we have a metric that measures the accumulation of scarcity, not the generation of cash flow. And in the world of hard money, that is a revolution. For the full mechanics, see the BTC Yield pillar; to see live figures by company, the treasuries directory.
