BTC Multiple
The ratio of Strategy’s BTC NAV to its BTC $ Equity, indicating leverage in its Bitcoin treasury.
What is BTC Multiple?
BTC Multiple measures the amplification of Bitcoin exposure through leverage, calculated as BTC NAV divided by BTC $ Equity, where BTC $ Equity is BTC NAV minus BTC $ Value. In Strategy’s framework, it reflects the recursive upside from financing, with higher multiples signifying greater torque on Bitcoin price movements.
As of March 2025, multiples vary by security, such as 52.1x for the 2028 convertible notes, dropping to 5.3x for preferred stocks like STRK.
This illustrative metric aids in assessing risk-reward, though it is not a traditional financial measure and should be used cautiously.
Related Terms
Primary Dealers
Designated financial institutions authorized to trade directly with the Federal Reserve Bank of New York in government securities, numbering 24 as of 2025.
APR (Lending)
The annualized percentage rate of interest earned or paid in DeFi lending, excluding compounding.
Bitcoin (BTC)
The first and most valuable decentralized digital currency, created by Satoshi Nakamoto in 2009.
BTC Yield
Strategy's key performance indicator measuring the percentage increase in Bitcoin holdings per diluted common share over a period.
CDP
A collateralized debt position, a smart contract mechanism in DeFi that allows users to borrow digital assets by locking collateral.
Active Management Burden
The ongoing requirement for liquidity providers to monitor and adjust positions in DeFi to optimize returns and mitigate risks.