Main Points:
- Traditional equity valuation is shifting from cash‐flow metrics to Bitcoin‐acquisition capacity.
- Strategy (formerly MicroStrategy) has scaled its treasury to over 592,000 BTC via equity and debt raises.
- Institutional adoption is accelerating: imitators in Japan and the U.S. are exploring Bitcoin‐treasury strategies.
- This model depends on capital‐raise velocity more than operational revenue growth.
- New valuation metrics—“BTC per share” and “dilution‐adjusted acquisition rate”—are emerging.
- Regulatory clarity and ETF approvals are boosting corporate comfort with Bitcoin holdings.
1. From Cash Flows to Bitcoin Flows
In the century‐old world of corporate finance, analysts gauge a firm’s worth by discounting future cash flows. Michael Saylor argues this paradigm is obsolete for “Bitcoin‐financed” enterprises. Instead, value derives from how rapidly a company can issue securities and convert proceeds into Bitcoin. This “acquisition yield” eclipses traditional revenue‐driven growth.
“The true measure of a Bitcoin treasury company is not its EBITDA but its Bitcoin‐per‐share growth,” Saylor declared at the Bitcoin for Corporations 2025 conference.
2. Strategy’s Unprecedented Accumulation
Since 2020, Strategy (NASDAQ: MSTR) has raised capital through common and preferred‐stock offerings, funneling proceeds into Bitcoin purchases. Key milestones include:
- May–June 2025: Raised $1 billion via STRD preferred shares, securing over 10,000 BTC.
- Week of June 22: Acquired 245 BTC for $26 million, bringing the total to 592,345 BTC at an average cost of $70,681.
- Current Treasury Value: $64 billion, nearly double the company’s market capitalization ($108 billion).
Subheading: Equity‐to‐Bitcoin Conversion Cycle
- Raise Equity – Issue shares/preferreds.
- Deploy Proceeds – Immediate Bitcoin acquisition.
- Market Impact – Scarcity premium as corporate demand rises.
- Reinvest – Re-issue securities against Bitcoin collateral.
This loop outpaces real‐estate and industrial growth cycles, shifting the bottleneck to capital‐markets access.
3. Ripples Across the Industry
Saylor’s strategy has inspired imitators globally. Japan’s Metaplanet has filed for a “Bitcoin‐treasury” corporate charter. U.S. fintechs are lobbying the SEC for clearer guidelines on holding digital assets on balance sheets. Meanwhile:
- ETF Momentum: BlackRock and Fidelity’s spot‐Bitcoin ETF filings signal institutional approval.
- Political Backdrop: Corporate Bitcoin themes dominated the Bitcoin 2025 Conference in Las Vegas, aligning the asset with mainstream politics.
4. Emerging Valuation Metrics
To appraise these Bitcoin‐led companies, analysts propose new KPIs:
- BTC Per Share (BTCPS): Total BTC holdings ÷ shares outstanding.
- Dilution‐Adjusted Acquisition Rate (DAAR): Net BTC added per share issued.
- Treasury Yield: Change in BTC holdings × price appreciation.
These metrics complement, and may eventually supersede, P/E ratios for digital‐asset companies.
5. Risk Factors and Regulatory Hurdles
- Volatility Risk: Bitcoin’s price swings can erode treasury value; Strategy’s small weekly buy of 245 BTC last week hints at saturation concerns.
- Regulatory Risk: Evolving tax treatments and reporting requirements could complicate securities issuance.
- Liquidity Risk: Large BTC sales to meet redemptions may depress market prices.
6. Future Outlook
With Bitcoin’s adoption crossing into the Early Majority phase, corporate treasuries are primed for broader participation. Companies with strong capital‐markets access stand to compound their Bitcoin stacks, potentially outpacing peers locked into cash‐flow growth.
Conclusion
Michael Saylor’s Bitcoin‐treasury blueprint challenges centuries of valuation orthodoxy. By refocusing on capital‐raise velocity and Bitcoin‐acquisition capacity, firms redefine growth in the digital‐asset era. As regulatory clarity improves and institutional acceptance deepens, this model may evolve from niche strategy to mainstream finance, shaping corporate balance sheets around the world.
