Understanding the Price / BPS Ratio 🔍

• Definition:

Price/BPS = Share Price in BTC / BTC in Treasury per Share

It quantifies how many BTC you pay for each BTC held in the company’s treasury.

• How to Read It:

– > 1 → Trading at a premium (you pay more sats than the BTC held).

– < 1 → Trading at a discount (you pay fewer sats than the BTC held).

– = 1 → Parity: 1 BTC out for 1 BTC in treasury.

• Real-World Snapshot:

– MicroStrategy (#MSTR): Price/BPS 1.733 → pay ~1.733 BTC for each 1 BTC in treasury

– MARA Holdings (#MARA): Price/BPS 1.101 → pay ~1.101 BTC for each 1 BTC in treasury

– Riot Platforms (#RIOT): Price/BPS 1.548 → pay ~1.548 BTC for each 1 BTC in treasury

– Galaxy Digital (#GLXY.TO): Price/BPS 3.777 → pay ~3.777 BTC for each 1 BTC in treasury

– CleanSpark (#CLSK): Price/BPS 2.140 → pay ~2.140 BTC for each 1 BTC in treasury

• Why It Matters:

Instant NAV Insight – See if the market is over- or under-valuing a #BTC treasury at a glance.

Opportunity Identification – Target equities trading at tight premiums or meaningful discounts.

Precision Risk Control – Quantify exactly how many sats you give up (or gain) on every share.

For sophisticated allocators, Price/BPS is your valuation compass. Navigate your BTC allocations with confidence. 🚀