Investors evaluating companies with Bitcoin treasuries use three primary metrics to assess value per share. Raw Bitcoin Per Share (BPS) divides total holdings by existing common shares, though it ignores potential dilution from warrants or convertible debt.
Bitcoin Per Assumed Diluted Share (BPADS) accounts for potential dilution by including all securities that could convert into common stock. This metric, which gained prominence in 2024, offers a more conservative view for companies with complex capital structures.
Net Bitcoin Per Share (Net BPS) provides a more comprehensive analysis by deducting senior claims, such as debt or preferred stock, from total holdings. This calculation reflects the residual assets attributable to common shareholders.
Net BPS is sensitive to Bitcoin price fluctuations because senior claims are typically dollar-denominated. As the price of Bitcoin rises, fewer units are needed to cover fixed obligations, increasing the residual amount for common equity.
To measure economic accretion, analysts recommend comparing Net BPS before and after corporate transactions while keeping the Bitcoin price constant. This isolates the impact of financing decisions from market volatility.
