Discussion within Bitcoin treasury firms is intensifying. Jack Mallers, the CEO of XXI Capital, has declared that his company will no longer use the Bitcoin per share metric—a long-standing benchmark in this industry.
This move implicitly challenges Michael Saylor and the Bitcoin treasury strategy he popularized.
Mallers explained that investors now desire a Bitcoin-related stock capable of generating cash flow without diluting existing shareholders while offering maximum leveraged exposure to Bitcoin. He argued that the traditional Bitcoin per share measurement fails to meet these investor expectations.
The timing of this announcement is significant. Strategy, led by Saylor, recently secured $2.1 billion for additional Bitcoin acquisitions, with roughly 86% raised through issuing new common shares. This practice lies at the core of Mallers’ critique: issuing fresh shares to purchase more Bitcoin diminishes each current shareholder’s proportional ownership despite increasing total holdings.
Market data suggests that companies following the Bitcoin treasury model are facing challenges; nearly 40% trade below their net asset value (NAV), and over 60% acquired their Bitcoins at prices higher than current market levels.
XXI Capital holds approximately 43,514 BTC—valued near $3.8 billion—making it the third-largest institutional holder globally. The firm enjoys backing from prominent financial entities including Cantor Fitzgerald, Tether, and Japan’s SoftBank.
The BTC per share ratio indicates how much Bitcoin each shareholder theoretically owns but declines when companies issue new shares to buy more BTC due to dilution effects. Without naming specific firms, Mallers noted some have had to dilute shareholders or even sell Bitcoins just to raise capital. Strategy’s recent funding round exemplifies this: they raised $1.83 billion by selling over ten million shares; subsequently their stock dropped 8% in one day and has lost 62% over six months.
Mallers stated XXI Capital will now focus on maximizing exposure to Bitcoin by generating cash flow without diluting shareholders but withheld details on execution plans until an appropriate time arises. Nonetheless, abandoning BTC per share reporting marks a major departure from an industry standard closely associated with Saylor’s approach.
*This content does not constitute investment advice.*