Knowledge base
"Bitcoin per share" has come up repeatedly across this series as the number that actually matters, more than total Bitcoin held. It's time to define it properly, and show how it's actually used.
Bitcoin per share is simply a company's total Bitcoin holdings divided by its total number of shares in issue, a single figure showing how much Bitcoin sits behind each individual share.
Total Bitcoin held can grow simply by issuing more shares, which doesn't necessarily benefit any single existing shareholder, it depends entirely on the terms of that raise. We covered this properly in our article on accretive Bitcoin strategies, but the short version is this: Bitcoin per share is the figure that actually reflects whether a shareholder's position is growing or being diluted, regardless of what's happening to the total headline number.
Here's a hypothetical company tracking its own Bitcoin per share over four periods, entirely for illustration:
| Period | Total BTC Held | Shares in Issue | BTC per Share |
|---|---|---|---|
| Period 1 | 100 | 1,000,000 | 0.000100 |
| Period 2 | 130 | 1,150,000 | 0.000113 |
| Period 3 | 165 | 1,300,000 | 0.000127 |
| Period 4 | 165 | 1,250,000 | 0.000132 |
Notice Period 4: total Bitcoin held didn't increase at all, yet Bitcoin per share still grew, because the number of shares in issue fell, illustrating why the per-share figure, not the headline total, is the one worth watching. Again, these numbers are purely illustrative, not real company data.
Some companies report Bitcoin per share on both a "basic" basis (using shares currently in issue) and a "fully diluted" basis, which also accounts for shares that could be issued in future from things like convertible instruments or employee options. The fully diluted figure is generally the more conservative, cautious number to pay attention to.
Bitcoin per share tells you what's backing each share, but it doesn't automatically tell you what the market will actually pay for it. Shares can trade above or below the value implied by Bitcoin per share alone, depending on expectations about future growth, trust in management, and the value of any operating business. Our article on NAV, and why it matters for treasury companies explains that relationship properly. Nothing in this article is financial advice, and anyone considering an investment should do their own research and consider speaking to a regulated financial adviser.
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In our next article, What Is “Amplified Bitcoin”? Understanding Leveraged Treasury Exposure, we'll look at how some companies try to grow Bitcoin per share more aggressively — and the added risk that comes with it.
