[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Andrรฉ Dragosch, PhDโก [@Andre_Dragosch](/creator/twitter/Andre_Dragosch) on x 24.2K followers Created: 2025-07-02 15:45:00 UTC Almost every CEO tries to maximize $BTC Yield nowadays but... $๐๐ง๐ ๐ฌ๐ถ๐ฒ๐น๐ฑ ๐ฎ๐ป๐ฑ #๐๐ถ๐๐ฐ๐ผ๐ถ๐ป ๐ฝ๐ฒ๐ฟ ๐ฆ๐ต๐ฎ๐ฟ๐ฒ ๐ฎ๐น๐ผ๐ป๐ฒ ๐ฎ๐ฟ๐ฒ ๐๐ผ๐บ๐ฒ๐๐ต๐ฎ๐ ๐บ๐ถ๐๐น๐ฒ๐ฎ๐ฑ๐ถ๐ป๐ด ๐บ๐ฒ๐๐ฟ๐ถ๐ฐ๐ ๐ถ๐ป ๐บ๐ ๐๐ถ๐ฒ๐. Let me explain why โฆ ๐งต ๐ $BTC Yield & $BTC per Share are calculated based on common equity issued by the respective company. The formula is as follows: ๐๐ง๐ ๐ฌ๐ถ๐ฒ๐น๐ฑ = ฮ (๐๐ง๐-๐ฝ๐ฒ๐ฟ-๐ฆ๐ต๐ฎ๐ฟ๐ฒ) However, major companies like $MSTR have pivoted away from issuing common equity to issuing hybrid capital like perpetual preferred equity. Note: although $MSTR does not dilute common equity shareholders, the claims on the underlying $BTC holdings are still rising. These securities are collateralized with those $BTC holdings as well. Converts & perpetual preferred equity have a more senior claim on $BTC holdings in case of default than common equity shareholders etc... Issuing non-common equity securities to acquire more #bitcoins creates the impression that $BTC-per-share is rising as $BTC holdings are rising while the supply of common equity stays constant. However, claims on underlying $BTC are still rising as well. ๐๐ป๐๐ฟ๐ผ๐ฑ๐๐ฐ๐ถ๐ป๐ด ๐๐ง๐ ๐ฅ๐ฎ๐๐ถ๐ป๐ด A more encompassing metric to assess the aggregate claims on the underlying $BTC holdings than just $BTC-per-share is to look at all outstanding debt & other hybrid capital instruments that ultimately securitize the underlying $BTC. In the context of $MSTR, these include: $BTC Rating can help you gauge how much higher the #bitcoin NAV of these holdings are relative to the company's liabilities. $BTC Rating is defined as followed: ๐๐ง๐ ๐ฅ๐ฎ๐๐ถ๐ป๐ด = (๐จ๐ฆ๐ ๐๐ฎ๐น๐๐ฒ ๐ผ๐ณ ๐๐ง๐ ๐ต๐ผ๐น๐ฑ๐ถ๐ป๐ด๐ / ๐ก๐ผ๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐ฎ๐น๐๐ฒ ๐ผ๐ณ ๐๐ฒ๐ฏ๐ & ๐ต๐๐ฏ๐ฟ๐ถ๐ฑ ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น ๐น๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ถ๐ฒ๐) $BTC Rating across different BTCTCs (per Q1 2025): $MTPLF XXXX $MSTR XXX $SMLR XXX Logic: You should generally favour those companies with a relatively higher $BTC Rating. They give you a larger buffer in case of #bitcoin price drawdowns. In addition, the delta of the $BTC Rating can be utilised in combination with $BTC Yield to assess whether a company is really managing to maximize $BTC holdings relative to underlying claims or whether it is just increasing claims on its $BTC holdings AT THE potential future EXPENSE of common equity shareholders. Consider the following $BTC Yields: (QoQ%, per Q1 2025): $MTPLF +81% $MSTR +11% $SMLR +15% Compare these to the change in $BTC Rating over the same time period: Change in $BTC Rating (per Q1 2025): $MTPLF +409% $MSTR -XX% $SMLR -infinity In other words, Strategy increased $BTC-per-Share at the expense of rising liabilities on these bitcoins. Meanwhile, Metaplanet managed to increase their $BTC-per-Share while also reducing their liabilities! It is no surprise that the better execution of Metaplanet is reflected in their strong outperformance against its peers. A rough rule-of-thumb over any time frame could be: 1โฃ $BTC Yield < -delta $BTC Rating = โinefficient use of capitalโ 2โฃ $BTC Yield >= -delta $BTC Rating = "liability-neutral increase in shareholder value" Note that common equity shareholders have the lowest seniority in the capital structure and are exposed the most risk with a falling $BTC Rating. Also note that $BTC Rating can fluctuate significantly with the varying performance of #bitcoin. Nonetheless, more efficient usage of funds and the underlying bitcoins - via lending, options writing etc - will clearly be reflected in higher $BTC Yield and higher $BTC Rating over time. Remember: It's not an art to increase debt and other non-common equity liabilities to acquire more #bitcoins to maximize $BTC Yield. The efficient use of capital is what separates the wheat from the chaff. I am convinced that those BTCTCs will do well during the next bear market and beyond that combine ๐ฐ๐ผ๐ป๐๐ถ๐ฐ๐๐ถ๐ผ๐ป (maximize $BTC Yield) with ๐ฐ๐ผ๐ป๐๐ฒ๐ฟ๐๐ฎ๐๐ถ๐๐บ (maximize $BTC Rating). BTCTCs can be a great investment. But you should know your risks and know what you own. BTCTCs are significantly more risky than direct #bitcoin investments and are a complete different asset class. As always DYOR. NFA. Hope you found these insights helpful. Follow me ๐ @Andre_Dragosch for more institutional #bitcoin & #macro insights. Stay humble and stack Sats, Andrรฉ  XXXXX engagements  **Related Topics** [$btc](/topic/$btc) [andr](/topic/andr) [bitcoin](/topic/bitcoin) [coins layer 1](/topic/coins-layer-1) [coins bitcoin ecosystem](/topic/coins-bitcoin-ecosystem) [coins pow](/topic/coins-pow) [Post Link](https://x.com/Andre_Dragosch/status/1940436551143424048)
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Andrรฉ Dragosch, PhDโก @Andre_Dragosch on x 24.2K followers
Created: 2025-07-02 15:45:00 UTC
Almost every CEO tries to maximize $BTC Yield nowadays but...
$๐๐ง๐ ๐ฌ๐ถ๐ฒ๐น๐ฑ ๐ฎ๐ป๐ฑ #๐๐ถ๐๐ฐ๐ผ๐ถ๐ป ๐ฝ๐ฒ๐ฟ ๐ฆ๐ต๐ฎ๐ฟ๐ฒ ๐ฎ๐น๐ผ๐ป๐ฒ ๐ฎ๐ฟ๐ฒ ๐๐ผ๐บ๐ฒ๐๐ต๐ฎ๐ ๐บ๐ถ๐๐น๐ฒ๐ฎ๐ฑ๐ถ๐ป๐ด ๐บ๐ฒ๐๐ฟ๐ถ๐ฐ๐ ๐ถ๐ป ๐บ๐ ๐๐ถ๐ฒ๐.
Let me explain why โฆ ๐งต ๐
$BTC Yield & $BTC per Share are calculated based on common equity issued by the respective company.
The formula is as follows:
๐๐ง๐ ๐ฌ๐ถ๐ฒ๐น๐ฑ = ฮ (๐๐ง๐-๐ฝ๐ฒ๐ฟ-๐ฆ๐ต๐ฎ๐ฟ๐ฒ)
However, major companies like $MSTR have pivoted away from issuing common equity to issuing hybrid capital like perpetual preferred equity.
Note: although $MSTR does not dilute common equity shareholders, the claims on the underlying $BTC holdings are still rising.
These securities are collateralized with those $BTC holdings as well. Converts & perpetual preferred equity have a more senior claim on $BTC holdings in case of default than common equity shareholders etc...
Issuing non-common equity securities to acquire more #bitcoins creates the impression that $BTC-per-share is rising as $BTC holdings are rising while the supply of common equity stays constant.
However, claims on underlying $BTC are still rising as well.
๐๐ป๐๐ฟ๐ผ๐ฑ๐๐ฐ๐ถ๐ป๐ด ๐๐ง๐ ๐ฅ๐ฎ๐๐ถ๐ป๐ด
A more encompassing metric to assess the aggregate claims on the underlying $BTC holdings than just $BTC-per-share is to look at all outstanding debt & other hybrid capital instruments that ultimately securitize the underlying $BTC.
In the context of $MSTR, these include:
$BTC Rating can help you gauge how much higher the #bitcoin NAV of these holdings are relative to the company's liabilities.
$BTC Rating is defined as followed:
๐๐ง๐ ๐ฅ๐ฎ๐๐ถ๐ป๐ด = (๐จ๐ฆ๐ ๐๐ฎ๐น๐๐ฒ ๐ผ๐ณ ๐๐ง๐ ๐ต๐ผ๐น๐ฑ๐ถ๐ป๐ด๐ / ๐ก๐ผ๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐ฎ๐น๐๐ฒ ๐ผ๐ณ ๐๐ฒ๐ฏ๐ & ๐ต๐๐ฏ๐ฟ๐ถ๐ฑ ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น ๐น๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ถ๐ฒ๐)
$BTC Rating across different BTCTCs (per Q1 2025):
$MTPLF XXXX $MSTR XXX $SMLR XXX
Logic: You should generally favour those companies with a relatively higher $BTC Rating. They give you a larger buffer in case of #bitcoin price drawdowns.
In addition, the delta of the $BTC Rating can be utilised in combination with $BTC Yield to assess whether a company is really managing to maximize $BTC holdings relative to underlying claims or whether it is just increasing claims on its $BTC holdings AT THE potential future EXPENSE of common equity shareholders.
Consider the following $BTC Yields: (QoQ%, per Q1 2025):
$MTPLF +81% $MSTR +11% $SMLR +15%
Compare these to the change in $BTC Rating over the same time period:
Change in $BTC Rating (per Q1 2025): $MTPLF +409% $MSTR -XX% $SMLR -infinity
In other words, Strategy increased $BTC-per-Share at the expense of rising liabilities on these bitcoins.
Meanwhile, Metaplanet managed to increase their $BTC-per-Share while also reducing their liabilities!
It is no surprise that the better execution of Metaplanet is reflected in their strong outperformance against its peers.
A rough rule-of-thumb over any time frame could be:
1โฃ $BTC Yield < -delta $BTC Rating = โinefficient use of capitalโ
2โฃ $BTC Yield >= -delta $BTC Rating = "liability-neutral increase in shareholder value"
Note that common equity shareholders have the lowest seniority in the capital structure and are exposed the most risk with a falling $BTC Rating.
Also note that $BTC Rating can fluctuate significantly with the varying performance of #bitcoin. Nonetheless, more efficient usage of funds and the underlying bitcoins - via lending, options writing etc - will clearly be reflected in higher $BTC Yield and higher $BTC Rating over time.
Remember: It's not an art to increase debt and other non-common equity liabilities to acquire more #bitcoins to maximize $BTC Yield.
The efficient use of capital is what separates the wheat from the chaff.
I am convinced that those BTCTCs will do well during the next bear market and beyond that combine ๐ฐ๐ผ๐ป๐๐ถ๐ฐ๐๐ถ๐ผ๐ป (maximize $BTC Yield) with ๐ฐ๐ผ๐ป๐๐ฒ๐ฟ๐๐ฎ๐๐ถ๐๐บ (maximize $BTC Rating).
BTCTCs can be a great investment. But you should know your risks and know what you own.
BTCTCs are significantly more risky than direct #bitcoin investments and are a complete different asset class. As always DYOR. NFA.
Hope you found these insights helpful.
Follow me ๐ @Andre_Dragosch for more institutional #bitcoin & #macro insights.
Stay humble and stack Sats, Andrรฉ
XXXXX engagements
Related Topics $btc andr bitcoin coins layer 1 coins bitcoin ecosystem coins pow