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
Fiat
Government-issued currency not backed by a physical commodity, used as legal tender in digital asset trading.
Fiat-pegged Stablecoin
A digital asset tied 1:1 to a fiat currency, like USD or EUR, for price stability.
Crypto
A shorthand term for cryptocurrency - digital currencies secured by cryptography and operating on decentralized networks.
Treasury Bonds (T-Bonds)
Long-term U.S. government debt securities with 20- or 30-year maturities, paying semiannual fixed interest.
Supply Rate (Lending)
The interest rate earned by suppliers depositing digital assets into a lending pool.
Skin in the Game (Prediction Market)
The financial or reputational stake participants commit to in a prediction market, aligning their actions with true beliefs.