Bitcoin Treasury Dictionary – verified terminology
BITCOIN TREASURY DICTIONARY
Verified definitions of the terminology used across the Bitcoin treasury sector. Every entry is sourced from Strategy's official disclosures, SEC filings, or standard financial and Bitcoin definitions. No loose interpretations; no invented terms.
Metrics & valuation
Bitcoin per Share (BPS)
Total Bitcoin holdings divided by assumed diluted shares outstanding. The ratio expresses how much Bitcoin each share theoretically represents at a given moment. Strategy uses BPS as the baseline for its BTC Yield, BTC Gain and BTC Dollar Gain KPIs. BPS is sensitive to dilution: if a company issues shares faster than it accumulates Bitcoin, BPS falls even when total holdings rise.
Source: Strategy Q1 2026 results.Strategy KPIs (official)
BTC Yield
Strategy's flagship KPI, defined as the percentage change in Bitcoin per Share from the start to the end of a measurement period. The metric measures per-share Bitcoin accretion, not income. Strategy states explicitly that BTC Yield is not a traditional yield in the sense of dividends or interest. It can be positive (the company added Bitcoin faster than it diluted) or negative (dilution outpaced accumulation).
Source: Strategy Q3 2025 results.BTC Gain
Bitcoins held at the start of a period multiplied by the BTC Yield for that period. The output is expressed in Bitcoin terms, not dollars. BTC Gain translates a percentage KPI into the absolute amount of Bitcoin a shareholder effectively gained through dilution-adjusted accretion.
Source: Strategy Q3 2025 results.BTC Dollar Gain
The dollar value of BTC Gain. Calculated as BTC Gain multiplied by the prevailing market price of Bitcoin at the end of the measurement period. Translates the per-share accretion into a dollar figure useful for comparison with cash dividends or income from other holdings.
Source: Strategy Q3 2025 results.Accretive
A corporate action is accretive when it increases Bitcoin per Share. The opposite is dilutive. Strategy describes its acquisition programme as intended to be accretive to shareholders over time. Whether a specific equity raise, debt issuance, or share buyback is actually accretive depends on the relative speed of dilution and Bitcoin acquisition that follows.
Source: Strategy Q1 2026 results.Capital markets
Preferred Stock
A class of equity that ranks ahead of common stock for dividend payments and in the event of a liquidation, but typically behind debt. Preferred shareholders usually receive a fixed dividend and do not participate in the residual upside in the same way common shareholders do. Specific rights vary by issue and are set out in the prospectus.
Source: Standard corporate finance definition.Cumulative vs Non-Cumulative
A cumulative preferred dividend that is skipped continues to accrue as an obligation of the company and must be paid before any dividend to common shareholders. A non-cumulative preferred dividend that is skipped is lost; the company has no obligation to pay it later. Strategy's STRK, STRF and STRC are cumulative. STRD is non-cumulative.
Source: Standard definition. Strategy disclosures per each prospectus.Liquidation Preference (par or stated value)
The per-share amount that preferred shareholders are entitled to receive in a liquidation before any distribution to common shareholders. Strategy's preferred shares use a USD 100 stated value. Aggregate liquidation preference is the per-share value multiplied by shares outstanding and represents the senior claim on assets ahead of common equity.
Source: Standard definition. Strategy preferred prospectuses.Capital Stack (seniority waterfall)
The ordered ranking of claims on a company's assets and cash flows. Higher ranking instruments are paid first; lower ranking instruments absorb losses first. For Strategy the order is, broadly, convertible senior notes, then STRF (and STRE), then STRC, then STRK, then STRD, then MSTR common stock at the bottom. Capital stack analysis is essential when interpreting an mNAV figure, because the more layers of senior capital sit above common equity, the less of the underlying Bitcoin value flows through to the common shareholder.
Source: Standard structure. Strategy capital structure per Bitcoin Magazine Pro and The Block.At-the-Market Offering (ATM)
A capital-raising programme through which a company sells newly issued shares gradually into the open market at prevailing trading prices, rather than in a single block trade at a negotiated discount. ATM offerings allow companies to issue equity at a pace that responds to demand, and are the primary mechanism Strategy uses to convert capital markets access into Bitcoin purchases.
Source: Standard capital markets definition.Convertible Note
A form of debt instrument that can be converted into a fixed number of the issuer's shares, typically at the holder's option, subject to defined conversion prices and dates. Convertibles combine a bond's principal protection with the equity upside if the company's share price exceeds the conversion price. Strategy has issued multiple tranches of convertible senior notes maturing between 2028 and 2032.
Source: Standard fixed income definition.Cost Basis (per BTC)
The average price paid per Bitcoin acquired by a treasury company, calculated as cumulative USD spent divided by cumulative BTC purchased. Cost basis is reported per quarter in Strategy's 10-Q and 8-K filings and is the reference price against which paper gains and impairments are measured.
Source: Standard accounting definition. Strategy SEC filings.Dilution
The reduction in each existing share's proportional claim that occurs when a company issues new shares. For Bitcoin treasury companies, dilution is the cost of funding Bitcoin purchases through ATM offerings or convertible note conversions. The question is not whether dilution occurs but whether the Bitcoin acquired with the proceeds exceeds the dilution measured on a per-share basis (the accretive test).
Source: Standard corporate finance definition.Float (public float)
The number of shares actually available for trading on the public market, excluding shares held by insiders, founders, or other restricted parties. A small float relative to total shares outstanding can amplify price moves and is a recurring source of volatility in several smaller Bitcoin treasury issues.
Source: Standard capital markets definition.PIPE (Private Investment in Public Equity)
A transaction in which a public company sells equity (often at a discount) to a selected group of accredited investors outside the public market. PIPE financings have been used by several smaller Bitcoin treasury companies to fund initial BTC purchases without the time and disclosure burden of a registered public offering.
Source: Standard capital markets definition.Regulatory disclosure
Form 4 (SEC insider filing)
A US Securities and Exchange Commission filing in which corporate insiders disclose changes in their beneficial ownership of company securities. Insiders include officers, directors, and beneficial owners of more than 10 percent of a class of equity. Filings are typically due within two business days of the transaction and are publicly available through SEC EDGAR.
Source: SEC EDGAR Form 4 specification.PDMR (Persons Discharging Managerial Responsibilities)
The EU and UK equivalent of US Form 4 insider filings, mandated under article 19 of the Market Abuse Regulation. Covers directors, senior executives, and persons closely associated with them. Filings are typically due within three business days and are published by the relevant national competent authority.
Source: Market Abuse Regulation, article 19.Insynsregistret (Finansinspektionen PDMR register)
The Finansinspektionen (Swedish Financial Supervisory Authority) register of PDMR transactions in Swedish-listed securities. Covers persons holding leading positions and parties closely associated with them. The register is publicly searchable and is the primary source for insider transactions in Swedish Bitcoin treasury companies such as H100 Group, Bitcoin Treasury Capital and K33.
Source: Finansinspektionen insynsregister.Schedule 13D / 13G (SEC beneficial ownership)
US Securities and Exchange Commission beneficial ownership disclosures filed when a party acquires more than 5 percent of a class of equity securities. 13D is the active-investor form (filed within 5 business days); 13G is the short form for passive investors or qualified institutional holders. Provides a public window onto large concentrated positions in Bitcoin treasury issues.
Source: SEC Schedule 13D/13G specification.Strategy securities
MSTR (common stock)
Strategy's common stock, listed on Nasdaq under the ticker MSTR. Sits at the bottom of the capital stack: most upside if Bitcoin appreciates and the BPS strategy compounds; most downside if capital markets access narrows or convertible refinancing pressure increases.
Source: Self-evident from the listing.STRK (Strike)
An 8 percent convertible perpetual preferred share series, launched in January 2025. Convertible into MSTR common at a 10 to 1 ratio. Dividends are cumulative. STRK pairs the income profile of a preferred share with embedded equity optionality through the conversion feature.
Source: Strategy disclosures, January 2025 launch.STRF (Strife)
Strategy's senior-most perpetual preferred share series. Stated dividend of 10 percent annually, paid quarterly in cash. Carries governance rights and dividend step-up penalties up to 18 percent on missed payments. The combination of a high coupon, senior position in the stack, and step-up protection make STRF Strategy's most defensive income instrument.
Source: Strategy official, strategy.com/strf/learn.STRD (Stride)
10.00 percent Series A Perpetual Stride Preferred. USD 100 stated value. Non-cumulative dividends, meaning skipped distributions do not accrue as future obligations. IPO priced at USD 85.00 per share in June 2025.
Source: Strategy SEC Form 8-K, June 2025.STRC (Stretch)
A perpetual preferred share series with a variable monthly dividend rate, set at 11.50 percent at the time of writing. The rate is adjusted in 0.25 percent monthly steps with the explicit goal of keeping the trading price near the USD 100 par value. Cumulative dividends, paid monthly rather than quarterly.
Source: Strategy official, strategy.com/strc/learn. Rate at the time of writing.STRE
The euro-denominated counterpart to STRF. EUR 100 par value, 10 percent dividend. Listed on the Luxembourg Stock Exchange. Extends Strategy's preferred share offering to European investors who prefer euro-denominated income.
Source: Strategy disclosures per The Block and analytics coverage.Bitcoin basics
Bitcoin (BTC)
The first decentralised digital currency. Secured by a public, proof-of-work blockchain. Has a fixed maximum supply of 21,000,000 coins. The protocol is governed by network consensus and has no issuing authority. The supply cap is the property that makes Bitcoin a candidate for a corporate treasury reserve asset rather than a transactional currency alone.
Source: Bitcoin whitepaper, public protocol specification.Satoshi (sat)
The smallest divisible unit of Bitcoin. One Bitcoin equals 100,000,000 satoshis. Named after the protocol's pseudonymous creator. As Bitcoin appreciates, the satoshi becomes the more useful unit of account for small balances and for per-share metrics like sats per share.
Source: Bitcoin protocol definition.Bitcoin Treasury Company
A publicly traded company that holds Bitcoin as a primary reserve asset on its balance sheet, giving equity investors indirect exposure to Bitcoin through their shareholding. Strategy popularised the model in 2020. As of 2026 more than one hundred public companies operate variants of it, ranging from pure treasury vehicles to operating businesses that allocate excess capital to Bitcoin.
Source: Descriptive standard usage in the sector.HODL
An informal term for a long-term Bitcoin holding strategy. Originated as a typo of 'hold' in a December 2013 BitcoinTalk forum post. Frequently retconned as an acronym for 'hold on for dear life'. In the treasury context, HODL describes the discipline of accumulating Bitcoin without selling regardless of price volatility.
Source: BitcoinTalk forum, December 2013.Halving
A scheduled protocol event that occurs roughly every four years in which the Bitcoin mining reward per block is cut in half. The halving reduces the rate at which new Bitcoin enters circulation. The most recent halving took place on 19 April 2024, dropping the block reward from 6.25 BTC to 3.125 BTC.
Source: Bitcoin protocol specification.Dollar-Cost Averaging (DCA)
An accumulation strategy in which a fixed dollar amount is allocated to Bitcoin at regular intervals regardless of price. DCA reduces timing risk and is the implicit strategy behind most treasury company purchase programmes. The approach replaces the question of when to buy with the question of how much, and how often.
Source: Standard finance definition.Cold Storage
The practice of keeping Bitcoin private keys offline, isolated from any network-connected device. Cold storage protects against remote attacks but requires physical security and operational procedures to access. Most institutional treasury companies hold their Bitcoin in cold storage through qualified custodians.
Source: Standard Bitcoin security definition.Bitcoin Custodian
A specialised financial institution that holds Bitcoin on behalf of corporate or institutional clients. Custodians such as Fidelity Digital Assets, Coinbase Custody, and BitGo offer cold storage, insurance, and segregated accounts. The choice of custodian is a material balance-sheet decision for any Bitcoin treasury company.
Source: Industry standard. Strategy custody disclosures per SEC filings.Bitcoin Standard
A treasury approach in which a company measures performance and capital allocation decisions in Bitcoin terms rather than in dollars. Adopted by Strategy and a growing number of issuers, the Bitcoin standard frames a year as a success if Bitcoin per share rises even when the dollar-denominated balance sheet contracts.
Source: Strategy disclosures and shareholder communications.Proof of Reserves
An on-chain attestation that an entity actually controls the Bitcoin it claims to hold. For exchanges and custodians, proof of reserves typically combines public wallet addresses with Merkle-tree liability commitments. For Bitcoin treasury companies, equivalent assurance is provided through audited SEC filings and custodian attestations.
Source: Industry standard. Various exchange and custodian implementations.