Bitcoin per share is one of the most important metrics for evaluating a Bitcoin treasury company. It measures how much bitcoin is attributable to each common share. However, there are several ways to calculate this figure, and each method provides different information about the economics of owning the common stock.

Understanding these differences is essential for evaluating a company’s capital structure, measuring accretion, and determining the value attributable to common shareholders.

This calculation divides the company’s bitcoin holdings by its existing common shares. It provides a straightforward measure of how much bitcoin is attributable to each currently outstanding share.

The primary limitation is its treatment of potential dilution. A company may have warrants, convertible debt, or convertible preferred stock that could eventually become common shares. Raw BPS only counts existing shares, so it provides an incomplete picture of the potential future share count.

Bitcoin Per Assumed Diluted Share (BPADS) addresses this limitation by incorporating the shares that would exist if all potentially dilutive securities converted into common stock.

Because the assumed diluted share count is greater than or equal to the existing share count, BPADS is always less than or equal to raw BPS.

This metric became widely cited beginning in 2024, particularly as Bitcoin treasury companies began using increasingly complex capital structures.

BPADS provides a more conservative view of bitcoin ownership by incorporating potential dilution from outstanding securities. It becomes especially relevant for companies with substantial convertible debt, warrants, or convertible preferred stock.

Warrants and convertible debt may never convert if the common stock price remains below their conversion or exercise prices.

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