Bitcoin & Treasury Glossary

A Spanish tax advantage of inheriting versus gifting: the appreciation of a deceased person's assets (including their Bitcoin) is not taxed in the deceased's income tax.

Keeping client assets legally and operationally separate from the custodian's balance sheet, so they do not enter the bankruptcy estate if it fails.

All-Time High: the highest price an asset has ever reached.

All-Time Low: the lowest price an asset has ever reached.

At-the-market equity issuance used by treasury companies to fund BTC purchases.

BTC recorded as an asset on a company's balance sheet.

Bitcoin Improvement Proposal: a formal proposal to change the Bitcoin protocol.

An exchange-traded fund that tracks the price of BTC without requiring investors to custody Bitcoin directly.

A board-approved internal framework defining how, how much, and under what rules a company acquires, custodies, and reports the Bitcoin on its balance sheet.

The BTC reward paid to the miner who validates a block.

Bitcoin per fully diluted share: the denominator of BTC Yield.

Treasury performance metric: the change in BTC per fully diluted share.

A clause allowing the issuer to redeem a preferred share at par value from a given date.

The mix of debt, preferred stock and common equity that funds a company.

A figure in the European MiCA regulation: an entity authorized to provide services on crypto assets, including custody, with capital and segregation requirements.

Argentine Depositary Certificate: an instrument listed on BYMA that represents a fraction of a foreign stock or ETF. Traded in pesos; the IBIT and MSTR CEDEARs are the local route to Bitcoin exposure.

Storing Bitcoin in wallets with no internet connection.

A bond that can be converted into common shares under certain conditions.

A company that adopts Bitcoin as a primary or significant balance-sheet asset.

Safeguarding the private keys to Bitcoin or other cryptocurrencies — yourself (self-custody) or by delegating it to a professional provider that is accountable for their security.

Under Spanish tax law, swapping one crypto for another (e.g., Bitcoin for Ethereum) is a taxable exchange: it triggers a capital gain or loss even if you never touch euros.

Unpaid preferred dividends that keep accruing and must be paid before any distribution to common stock.

Independent verification of an entity's Bitcoin holdings: their existence, ownership (control of the keys), and valuation.

The reduction in a shareholder's ownership percentage when new shares are issued.

A Spanish tax on unrealized gains when moving tax residency out of Spain (Article 95 bis of the IRPF law), potentially applicable to your cryptoassets depending on the case.

Accounting valuation of an asset at real-time market price.

The U.S. accounting standard requiring Bitcoin to be measured at fair value, with gains and losses recognized in earnings.

Grayscale Bitcoin Trust: the first BTC investment vehicle for institutional investors in the US.

The first block in the Bitcoin chain, mined by Satoshi Nakamoto on January 3, 2009.

The halving of the mining reward every 210,000 blocks (~4 years).

The total computing power of the Bitcoin network, measured in hashes per second.

The strategy of holding Bitcoin long term without selling, regardless of price.

A scaling layer built on top of Bitcoin that inherits its security to process more transactions.

Layer 2 for instant payments on top of Bitcoin, designed for low-cost transactions.

The queue of transactions awaiting confirmation on the Bitcoin network.

Markets in Crypto-Assets: the European Union's regulatory framework for digital assets, in force since 2024.

Parameter that adjusts how hard it is to mine a block, every 2,016 blocks.

Multiple on Net Asset Value: how a treasury company trades relative to its BTC.

Spain's informational filing for crypto held abroad: mandatory when combined holdings exceed €50,000 as of December 31.

A cryptographic technique that splits a private key into several shares that are never fully reconstructed in a single place.

Custody scheme requiring multiple private keys to authorize a transaction.

Net Asset Value: the net value of the assets of a fund, ETF or treasury company. In Bitcoin terms, the BTC on the balance sheet multiplied by its market price.

Latin phrase indicating equal ranking in priority between two or more financial instruments.

Fixed-income instrument with no maturity that pays a fixed dividend, ranking ahead of common shareholders.

The percentage gap between a company's share price and its BTC NAV.

Top-quality collateral: liquid, free of counterparty risk, and with no possibility of default. Bitcoin aspires to be digital pristine collateral.

A cryptographic, audited demonstration that a custodian or exchange actually holds the assets it claims to custody for its clients.

Bitcoin's consensus mechanism: miners compete to solve complex mathematical problems.

A listed company whose single, central thesis is accumulating Bitcoin on its balance sheet.

A regulated entity — a bank or chartered trust — that meets the legal requirements to custody the assets of clients such as funds, RIAs and ETFs.

The smallest unit of Bitcoin: 0.00000001 BTC (one hundred-millionth).

Fixed maximum supply of 21 million Bitcoin, impossible to alter under the current protocol.

Soft fork activated in August 2017 that separates signatures from the transaction body and increases the effective block capacity.

Direct control of Bitcoin private keys without relying on a third party.

The priority hierarchy in the capital structure: who gets paid first in a liquidation.

The current market price of Bitcoin for immediate delivery.

Bitcoin accumulated by companies or governments as a long-term reserve asset.

Bitcoin upgrade (2021) that improves privacy, efficiency and smart contracts.

Unspent Transaction Output: the basic accounting unit of the Bitcoin blockchain.

The magnitude of the swings in Bitcoin's price over a given period.