BTC Yield Discount

Definition: BTC Yield Discount measures the difference between a company’s year-to-date bitcoin yield (BTC Yield YTD %) and a chosen performance benchmark (such as the sector average or BTC's baseline yield).

Formula: BTC Yield Discount = (BTC Yield YTD %) – (Benchmark Yield %) BTC Yield YTD % is the percentage increase in a company’s bitcoin holdings this year, relative to its starting balance (see prior guide). The benchmark could be the average yield of bitcoin treasury peers, an index, or a target yield set by analysts.

Example Calculation

If Company Alpha has grown its BTC stack by 10% so far this year, while the benchmark yield for bitcoin treasury companies is 12%: BTC Yield Discount = 10% – 12% = –2% This means Alpha is underperforming the benchmark by 2 percentage points.

Why Does BTC Yield Discount Matter?

This metric makes it simple to see who's adding more BTC per dollar invested versus the market norm. A positive discount (actually, a premium) signals outperformance; a negative number (true yield discount) highlights underperformance.

Consistently negative BTC Yield Discounts may push company leadership to improve yield strategies, optimize BTC mining or lending operations, or seek better capital efficiency.

Investors aiming to maximize BTC exposure may choose companies with a positive (or less negative) BTC Yield Discount, seeking the most efficient stack growth for every share owned.