Frequently Asked Questions
Bitcoin treasuries have become a defining trend in corporate finance. Public companies, private firms, governments, and ETFs now collectively hold over a million bitcoin. Whether you're evaluating a treasury company as an investment, tracking government seizures, or simply trying to understand why corporations are putting bitcoin on their balance sheets — here are the most common questions we encounter.
What is a bitcoin treasury company?
A bitcoin treasury company is a publicly traded or private company that holds bitcoin on its balance sheet as a treasury reserve asset, either alongside or instead of traditional reserves like cash and bonds. Strategy pioneered this approach in 2020.
Why do companies add bitcoin to their treasury?
Companies typically cite protection against currency debasement, the limited supply of 21 million BTC, and the potential for long-term appreciation. Some also view it as a way to attract investors seeking indirect bitcoin exposure through equity markets.
What is NAV premium/discount and why does it matter?
NAV (Net Asset Value) compares a company's market capitalization to the value of its bitcoin holdings. A company trading at 2x NAV means investors are paying $2 in market cap for every $1 of bitcoin the company holds. High premiums can indicate market enthusiasm or expectations of continued accumulation, while discounts may signal concerns about the company's strategy or management.
What are bitcoin ETFs and how are they different from treasury companies?
Bitcoin ETFs (Exchange-Traded Funds) are investment vehicles that hold bitcoin and trade on stock exchanges, giving investors direct price exposure. Unlike treasury companies, ETFs are passive — they simply hold bitcoin and track its price. Treasury companies are operating businesses that actively decide how much bitcoin to acquire and how to finance those purchases.
What is a bitcoin treasury strategy vs. simply holding bitcoin?
A treasury strategy implies active, ongoing accumulation — often funded through convertible debt, equity offerings, or operating cash flow — with bitcoin as a core part of the company's identity. Simply holding bitcoin might mean a one-time purchase or a small allocation without further plans. Companies like Strategy and Metaplanet exemplify the active strategy approach.