Public companies holding significant bitcoin (BTC) on their balance sheets have become a key investment theme in 2025. Despite multiple ways to gain BTC exposure—such as ETFs, spot BTC, wrapped BTC, and futures—many investors prefer buying shares of “bitcoin treasury companies” that trade at substantial premiums to their bitcoin net asset values (NAVs).
The premium reflects the difference between a company’s share price and the per-share value of its BTC holdings. For example, if a company holds $100 million in BTC with 10 million shares outstanding, its BTC NAV per share is $10. If its stock trades at $17.50, the company carries a 75% premium. This premium is also expressed through the multiple of NAV (mNAV), indicating how much the stock price exceeds the bitcoin NAV.
Leverage and Capital Access
One primary driver of these premiums is the companies’ ability to leverage public capital markets. Public firms can raise debt and equity to acquire additional BTC, acting as high-beta BTC proxies that amplify market exposure.
The at-the-market (ATM) equity issuance program is widely used, enabling companies to issue shares incrementally at current prices with minimal market disruption. When stock prices trade above BTC NAV, proceeds from ATM offerings can buy more BTC per share than the dilution caused, creating a compounding BTC-per-share growth loop.
Strategy (formerly MicroStrategy) exemplifies this approach, having raised billions through convertible notes and secondary sales since 2020. As of June 30, it held 597,325 BTC—about 2.84% of total BTC supply. Such financing tools allow public companies to scale BTC holdings, fueling investor confidence not just in current BTC assets but in future accumulation potential.
Market Premiums Across Companies
Premiums vary widely among bitcoin treasury companies. Strategy trades at a roughly 75% premium to BTC NAV, while smaller firms like The Blockchain Group and Metaplanet trade at premiums of 217% and 384%, respectively. These elevated valuations reflect capital market access, speculative potential, and narrative strength rather than just the underlying bitcoin growth.
Bitcoin Yield: A Key Performance Indicator
“Bitcoin yield”—the growth in BTC per diluted share over time—is crucial in explaining these premiums. It measures how effectively companies expand BTC holdings without excessive dilution. Metaplanet is notable for transparency, publishing a live bitcoin dashboard showing BTC holdings, BTC per share, and bitcoin yield in real time.
Metaplanet also provides proof of reserves, a practice some peers lack. Strategy’s Executive Chairman Michael Saylor has publicly opposed proof of reserves, citing security concerns, though many argue that publishing public wallet addresses poses no inherent security risk and can bolster investor trust by verifying BTC holdings on-chain.
Risks if Premiums Decline
These bitcoin treasury companies have benefited from bullish BTC markets and strong retail demand. To date, none have sustained trading below BTC NAV. However, the model depends on maintaining the premium. As noted by Matthew Sigel of VanEck, once shares trade at or below NAV, equity issuance shifts from being accretive to dilutive.
The capital raising and BTC accumulation cycle works so long as the premium supports it:
- Premium promotes capital raises
- Capital raises fund BTC accumulation
- BTC accumulation strengthens investor narrative
- Narrative maintains the premium
If the premium collapses, capital becomes more expensive, BTC purchases slow, and the narrative weakens, possibly undermining stock valuations and growth prospects. Investors should weigh these dynamics carefully, especially in less favorable market conditions.
For now, bitcoin treasury companies retain strong capital market access and investor interest. Their future success relies on financial discipline, transparency, and growing BTC per share rather than solely increasing BTC holdings.