
Joe Burnett, MSBA|Aug 05, 2025 21:57
For those who don’t understand how bitcoin treasury companies can trade at a premium:
If a company holds 900 million of bitcoin and has issued 1 billion of preferred equity paying a 10% yield, its net asset value is negative 100 million. Yet, the stock could still trade at a positive price because investors are buying the upside optionality. If bitcoin rises, the excess value flows entirely to common shareholders.(Joe Burnett, MSBA)
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