A New Way To Value Bitcoin Treasury Companies
2025-07-11 13:06:06
Main Idea
The article proposes a new method, Market to Fair Book Value (MFBV), to value Bitcoin treasury companies, focusing on the remaining Bitcoin value after debt repayment to provide a clearer picture for shareholders.
Key Points
1. Traditional valuation for Bitcoin treasury companies uses Market-to-Net Asset Value (mNAV), comparing enterprise value to Bitcoin holdings.
2. The proposed MFBV metric considers Bitcoin value minus debt, offering a bankruptcy-aware framework by focusing on shareholders' potential recovery.
3. MFBV is defined as Market Cap divided by (Bitcoin Value - Debt), marking Bitcoin at fair market value for accuracy.
4. Debt impacts both mNAV and MFBV, but MFBV provides a more intuitive measure by accounting for post-debt Bitcoin value.
5. The article compares mNAV and MFBV using real-world examples, showing differences in valuation outcomes, particularly for companies with high debt.
Description
Market-to-Fair Book Value as an Alternative to mNAV
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