Bitcoin X (tokenxoff.xyz) (BTC)

A Bitcoin treasury company does not require an mNAV expansion to outperform Bitcoin.

Yep, a Bitcoin treasury company can outperform Bitcoin while its CEBE mNAV stays frozen at exactly 1.00x.

No multiple expansion. No premium.

No Saylor sacrificing a goat during a séance inside a volcano.

Let’s make it easy.

100 BTC
100 common shares
$100,000 of fixed senior claims
No issuance, purchases, or sales

At $10,000 BTC, the treasury is worth $1,000,000.

Subtract the $100,000 claim and common equity has $900,000 of NAV, or $9,000 per share.

That debt is equivalent to 10 BTC, so common shareholders have residual exposure to 90 BTC, or 0.90 BTC per share.

Now Bitcoin rises 10x to $100,000.

The treasury is worth $10,000,000, but the claim is still only $100,000.

Common equity now has $9,900,000 of NAV, or $99,000 per share.

The debt now equals only 1 BTC, leaving common shareholders with 99 BTC, or 0.99 BTC per share.

Bitcoin went from $10,000 to $100,000.

10x.

The stock went from $9,000 to $99,000 at the exact same 1.00x CEBE mNAV.

11x.

Why?

10x BTC appreciation × 1.10x growth in CEBE per share = 11x stock appreciation.

The valuation multiple contributed nothing.

It was legally dead for the entire experiment.

Fixed-dollar claims shrink in Bitcoin terms as Bitcoin rises, causing more residual BTC exposure to accrue to each common share.

That is amplification.

Anyone claiming a treasury company requires mNAV expansion to outperform Bitcoin has been defeated by the numbers 1, 10, 100 and 1,000.

$BTC short, round 2? https://t.co/Zj2U4hghxf