A fascinating trend is emerging among public companies that hold Bitcoin on their balance sheets. Instead of issuing new shares to raise capital for further purchases, they are turning to innovative financing methods. This approach allows them to increase the amount of Bitcoin backing each existing share, a strategy that is captivating corporate treasurers and investors alike and helping to explain why stocks like MicroStrategy often trade at a premium to their net asset value.
The Pursuit of “Non-Dilutive Yield”
The core of this strategy is the concept of “non-dilutive yield”. In simple terms, it’s about growing the company’s Bitcoin treasury without diluting the ownership stake of existing shareholders. Traditionally, a company would sell new shares to raise cash, but this waters down the value for current investors.
The modern method involves using the Bitcoin already on the balance sheet as collateral. Firms are securing credit lines and structured debt against their BTC holdings. A prime example is KULR Technology Group, which closed a $20 million credit line with Coinbase, using its Bitcoin as backing. This provides the cash to buy more Bitcoin without ever printing a new share.
Introducing the “BTC Yield” Metric
This shift has given rise to a new key performance indicator: BTC Yield. Championed by MicroStrategy’s Michael Saylor, this metric tracks the percentage change in the amount of Bitcoin per share over time. It directly measures the effectiveness of a company’s capital allocation strategy for its shareholders.
The results can be striking. For instance, Semler Scientific reported a BTC Yield of 29.0% for the second quarter of 2025, and a 31.3% increase year-to-date. This tangible growth in Bitcoin per share is precisely what the market is beginning to reward, as it demonstrates capital efficiency and a commitment to increasing shareholder value in a very specific way.
Why the Market is Rewarding This Model
Investors are increasingly drawn to companies that can demonstrate a rising BTC per share. This appeal translates into a market premium, where the stock price trades above the simple net asset value of the company’s Bitcoin holdings. It signals that the market values not just the static hoard of Bitcoin, but the strategic skill and financial discipline required to grow it efficiently.
However, this model is not without its risks. The strategy is inherently bullish on Bitcoin’s long-term price. A significant and prolonged downturn could put pressure on collateralized loans, creating a feedback loop that stresses both the balance sheet and the overall corporate strategy. Furthermore, the approach relies on having reliable and liquid counterparties for financing.
Ultimately, the sustainability of this corporate treasury model hinges on the continued ability of these firms to report a steady BTC Yield while adeptly managing the associated credit and market risks. For now, it represents a sophisticated evolution in how public companies integrate digital assets into their core financial strategy.
