Corporate bitcoin treasuries are no longer a curiosity, they’re a defined capital allocation strategy. The playbook to fund that strategy matters just as much as conviction: it shapes cost of capital, dilution, risk, and the ability to buy dips. New accounting rules from the FASB (fair-value for crypto) also make disclosures clearer, which in turn influences how you communicate financing choices to investors.
- Why does funding structure matter?
- Option 1: Convertible senior notes
- Option 2: Credit facilities & structured financing
- Option 3: Shelf registrations & ATM equity
- Option 4: Operating cash flow & treasury optimization
- Risk, reporting & investor relations (IR)
- Core KPIs for Bitcoin Treasury Companies
- Mini case study: Staging a treasury with a facility (Matador)
- Putting it together: a sample funding roadmap
- Conclusion
Below is a practical guide to the main funding tracks, illustrated with live market examples and a case study of Matador Technologies Inc. (TSXV:MATA, OTCQB:MATAF, FSE:IU3), an emerging bitcoin-treasury company using a staged facility to scale holdings.
Why does funding structure matter?
Financing sets the tempo for accumulation. Convertibles can front-load firepower with equity-like upside for noteholders; credit facilities stage liquidity over time; shelf registrations and ATM programs provide opportunistic equity taps; operating cash flow can dollar-cost-average purchases with zero financing cost. Strategy’s multi-year use of convertible notes remains the canonical example of how structure can accelerate BTC acquisition at scale.
Option 1: Convertible senior notes
What they are. Unsecured debt that can convert into equity at a premium, typically carrying low coupons because investors receive optionality. Note that some convertible notes may be secured against assets, such as bitcoin proceeds from the note.
Why treasuries use them. They deliver large, immediate capacity to buy BTC; the equity optionality reduces borrowing cost vs. straight debt. Conversion premiums can also help minimize future dilution if the note converts.
Operator notes: Watch conversion premiums and caps, settlement mechanics (cash vs. shares), and potential future dilution.
Market example: MicroStrategy priced 0% convertible senior notes in late 2024 with an initial conversion price ~55% above the prevailing share price, illustrating how conversion terms can materially lower interest expense while preserving upside.
Option 2: Credit facilities & structured financing
What they are. Committed capital you can draw in tranches, often with covenants, collateral, and regulatory conditions.
Why treasuries use them. You secure a headline capacity but control timing, ideal for buying weakness and managing basis risk.
Case in point (Matador). In July 2025, Matador Technologies announced a USD $100M financing facility to accelerate its bitcoin-treasury strategy, with $10.5M funded at initial closing and the remainder available upon customary conditions. The company stated proceeds are dedicated to BTC purchases, an example of staged, purpose-built funding for a treasury mandate.
Operator notes: Scrutinize draw conditions (e.g., registration-rights effectiveness, approvals), any collateralization of BTC, and disclosure cadence so investors understand when and how capacity turns into coins.
Option 3: Shelf registrations & ATM equity
What they are. A base shelf prospectus (or equivalent) pre-clears you to issue various securities; an ATM lets you sell small equity blocks into the market over time.
Why treasuries use them. Flexibility. You can raise in favorable windows, minimize market impact, and pair with DCA-style BTC purchasing.
Matador governance & readiness. Ahead of its facility, Matador’s board approved a long-term acquisition strategy and filed a preliminary short-form base shelf to enhance financing flexibility, demonstrating governance alignment plus optionality. Here’s the Press release announcing the shelf prospectus filing.
Option 4: Operating cash flow & treasury optimization
What it is. Reinvesting free cash flow (or optimizing working capital) to accumulate BTC without leveraging the balance sheet.
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Why treasuries use it. Zero financing cost, cleaner optics, and fewer dilution or covenant considerations, though accumulation pace depends on business performance.
Context. Institutional playbooks over the last cycle highlight multiple paths, from convertibles to cash-flow DCA, depending on risk tolerance and growth stage.
Risk, reporting & investor relations (IR)
- Accounting clarity. Under ASU 2023-08, crypto assets are measured at fair value with changes in earnings; the standard is effective for fiscal years beginning after Dec 15, 2024 (early adoption permitted). Your IR script should explain how this interacts with financing and volatility.
- Disclosure cadence. Regular holdings updates (coins, cost basis, financing capacity used/remaining) build credibility, especially when facilities or convertibles are in play. Matador’s press-release cadence around strategy approval, facility terms, and subsequent purchases is a useful template for consistency.
- Custody & covenants. Facilities may dictate custody, collateral, or draw pre-conditions; ensure alignment with your key-management and audit posture before you commit. (Tie this back to term sheets and risk factors in filings.)
KPI Toolkit for Bitcoin Treasury Investors
Investors evaluating Bitcoin treasury companies focus on a set of key performance indicators (KPIs) to assess operational efficiency, capital management, and market positioning. These metrics provide a structured framework to determine whether a company is accumulating Bitcoin in a shareholder-accretive manner, creating more Bitcoin value than it consumes, earning a market premium, and managing its capital structure effectively. Below is a logically organized overview of the KPIs, their purpose, and their role in a Bitcoin-first operating model.
Core KPIs for Bitcoin Treasury Companies
- BTC per Share
- Purpose: Measures the amount of Bitcoin held per share and its growth rate over time.
- Significance: Indicates how effectively the company is accumulating Bitcoin for shareholders.
- Acquisition Cost vs. Spot
- Purpose: Compares the cost of acquiring Bitcoin to its current market (spot) price.
- Significance: Highlights cost efficiency in Bitcoin accumulation strategies.
- Financing Efficiency
- Purpose: Evaluates the cost of financing (coupon rates or embedded dilution) per Bitcoin acquired.
- Significance: Assesses how efficiently the company uses debt or equity to acquire Bitcoin.
- Update Frequency
- Purpose: Tracks the regularity and transparency of Bitcoin treasury updates.
- Significance: Reflects the company’s commitment to investor transparency.
- BTC Yield
- Purpose: Quantifies shareholder-accretive growth in Bitcoin holdings over time.
- Significance: Demonstrates the company’s ability to grow its Bitcoin reserves in a value-adding way.
- BTC Gain
- Purpose: Translates Bitcoin growth into absolute Bitcoin terms.
- Significance: Provides a clear measure of Bitcoin accumulation independent of fiat fluctuations.
- BTC $ Gain
- Purpose: Converts Bitcoin growth into fiat terms for traditional financial comparisons.
- Significance: Bridges Bitcoin performance to conventional valuation metrics.
- Bitcoin NAV (Net Asset Value)
- Purpose: Represents the total market value of Bitcoin held by the company.
- Significance: Offers a snapshot of the company’s Bitcoin asset base.
- BTC Rating
- Purpose: Compares Bitcoin NAV to the company’s liabilities.
- Significance: Assesses financial health and risk exposure relative to Bitcoin holdings.
- BTC Multiple
- Purpose: Measures Bitcoin value created per dollar of equity issued.
- Significance: Evaluates the efficiency of equity financing in generating Bitcoin value.
- BTC Torque
- Purpose: Assesses capital efficiency across all funding sources (equity, debt, etc.).
- Significance: Provides a holistic view of capital deployment in Bitcoin acquisition.
- mNAV (Market Net Asset Value)
- Purpose: Captures investor confidence and the market premium on Bitcoin holdings.
- Significance: Reflects the market’s perception of the company’s Bitcoin strategy.
- Days to Cover mNAV
- Purpose: Measures how quickly the company can earn back its market premium.
- Significance: Indicates the sustainability of the market’s confidence in the company.
- P/BYD (Price-to-Bitcoin-Yield)
- Purpose: Prices the company’s forward Bitcoin yield into a valuation multiple.
- Significance: Offers a forward-looking valuation metric tied to Bitcoin growth.
- BRR (Bitcoin Retention Rate)
- Purpose: Measures the rate of Bitcoin accumulation in BTC/month terms.
- Significance: Quantifies the velocity of Bitcoin stacking over time.
- FMC (Forward Market Coverage)
- Purpose: Converts market premium coverage into a time horizon.
- Significance: Provides a temporal perspective on market premium sustainability.
When used together, these KPIs enable investors to evaluate whether a Bitcoin treasury company is:
- Accumulating Bitcoin in a Shareholder-Accretive Way: Metrics like BTC per Share, BTC Yield, and BTC Gain highlight whether Bitcoin growth benefits shareholders without excessive dilution.
- Creating More Bitcoin Value Than Capital Consumed: BTC Multiple and BTC Torque reveal the efficiency of capital allocation in generating Bitcoin value.
- Earning a Market Premium: mNAV, Days to Cover mNAV, and FMC indicate whether the market rewards the company’s Bitcoin strategy with a valuation premium.
- Managing Capital Structure and Risk Effectively: BTC Rating and Financing Efficiency assess how well the company balances Bitcoin accumulation with financial stability.
In a Bitcoin-first operating model, dilution, leverage, and volatility are strategic levers rather than side effects. These KPIs help investors understand how effectively a company uses these levers to maximize Bitcoin accumulation while maintaining financial discipline.
To benchmark performance, investors can use market trackers such as CoinMarketCap, DroomDroom, or independent dashboards to compare a company’s KPIs against peers. Investor Relations (IR) teams should map these KPIs to public comparables to provide context and demonstrate competitive positioning.
Mini case study: Staging a treasury with a facility (Matador)
- Mandate: Board-approved long-term BTC acquisition strategy.
- Capacity: USD $100M facility sized to multi-year targets, with tranches gated by customary conditions.
- Execution: Initial USD $10.5M draw; proceeds dedicated to BTC purchases.
- Disclosure: Follow-on updates on holdings growth (e.g., August purchase update) sustain investor trust.
For companies earlier in their journey, this “commit + stage + disclose” approach balances ambition with prudence, funding flexibility, programmatic execution, and clear IR.
Putting it together: a sample funding roadmap
- Secure governance (board policy, risk limits, KPI definitions).
- Pre-clear optionality (shelf & ATM) to complement debt or facilities.
- Choose a primary engine (convertible notes for scale; facility for staged buying; cash flow for baseline DCA).
- Align custody & covenants with financing terms.
- Adopt IR discipline for fair-value reporting and treasury updates.
Conclusion
Funding a bitcoin treasury is not one decision, it’s a portfolio of choices across time. Convertibles can accelerate accumulation when equity conditions are strong; facilities let you buy weakness without sitting on idle cash; shelves and ATMs provide opportunistic taps; operating cash flow compounds quietly in the background. Matador’s staged facility illustrates a pragmatic, disclosure-forward way to execute this playbook while the new FASB standard brings cleaner accounting to the conversation. Done right, structure becomes a competitive edge, lowering friction from mandate to coins on the balance sheet.
