Author: CryptoSlate

Translation: Deep Tide TechFlow

Deep Tide Introduction: When a bitcoin treasury company's stock price falls below the value of its held bitcoin, the cheapest way to increase the bitcoin exposure per share may not be to buy bitcoin but to repurchase its own shares. The publicly listed company B HODL tested this paradox with real money, and the results were surprising—what does this mean for the entire bitcoin treasury industry?

When a bitcoin treasury company's trading price is below the value of its held bitcoin, the cheapest way to increase bitcoin exposure per share may be to repurchase its own shares.

The publicly listed company B HODL tested this inverted phenomenon in its first week of buybacks. The company spent approximately £37,985 to cancel 823,400 shares, resulting in an increase of total satoshis per share generated per pound spent of about 24% compared to buying bitcoin with the same cash.

This 24% advantage is pre-expense data, and these numbers fail to demonstrate the complete increase in net asset value (NAV) per share.

B HODL's official dashboard on July 19 showed it held 166.487 BTC, with a stock price of 5.25 pence, and a market value of £7.385 million. Calculating based on the displayed bitcoin price of £48,237, these holdings are valued at approximately £8.031 million, leaving a gap of about £646,000.

Based on the latest disclosed number of shares after cancellation and the same stock price, the equity value is approximately £7.378 million, which is about £652,000 or 8.1% lower than the bitcoin value. Both ends of the comparison are continuously changing.

Why Buying Stock Beats Buying Bitcoin

B HODL's £100,000 buyback authorization took effect on July 9. Disclosures covering purchases on July 9, 10, 13, 15, and 16 show a total of 823,400 shares, with a weighted average price of 4.613 pence. Before expenses, these purchases used about 38% of the authorization limit.

After announcing the cancellation, the number of shares decreased from 141,366,091 to 140,542,691 shares. Keeping 166.487 BTC constant, the total bitcoin per share increased from 117.77 satoshis to 118.46 satoshis, an increase of 0.69 satoshis or 0.59%.

At the same bitcoin price of £48,237, £37,985 could buy about 0.787 BTC. Spreading that purchase across the original number of shares would increase about 0.557 satoshis per share, while the buyback brings a 0.690 satoshi increase. Under these matching assumptions, the value gain effect per pound from canceling shares is about 24% higher.

Why B HODL Can Buy and Sell Its Own Shares

B HODL kept its at-the-money (ATM) issuance plan open while repurchasing. Its ATM only allows issuing shares when it has an appreciation effect under the company's bitcoin adjusted net asset value (mNAV) framework.

These tools create a capital allocation switch: issue equity when issuance can increase bitcoin per share, then repurchase equity when the stock itself offers a cheaper bitcoin exposure.

The company's latest interim balance sheet is historical data, so the first week displays the growth of total satoshis per share under established assumptions rather than the current growth of net asset value per share.

This revelation is conditional but very clear for other bitcoin treasury companies whose trading prices are below the value of bitcoin per share.

Whether this is the right move still depends on cash reserves, debt, trading liquidity, and operational needs; this discipline increasingly shapes the broader treasury industry.