BTC Denominated Debt

BTC denominated debt refers to any portion of a company’s total debt that is fixed, issued, or payable in bitcoin (BTC) instead of fiat currencies such as USD, EUR, or JPY. This includes loans, bonds, or other financial obligations where repayment terms are set in bitcoin, or that can be converted into bitcoin at fixed rates per the contract.

Formula: BTC Denominated Debt = Total par value of debt issued in BTC, or convertible to BTC at fixed terms

Example: Suppose a company borrows 100 BTC from a lender, with an agreement to repay the principal in 100 BTC (plus interest, also in BTC) at maturity. Even if BTC’s value fluctuates, the company’s obligation is always denominated in bitcoin, not the U.S. dollar.