The debate is growing among Bitcoin treasury companies. Jack Mallers, CEO of XXI Capital, announced that they are abandoning the Bitcoin per share (BTC-per-share) metric, which has long been used as a key indicator in the sector.
With this decision, Mallers indirectly leveled a harsh criticism at Michael Saylor and the Bitcoin treasury model he pioneered.
Mallers stated that the market now wants a Bitcoin stock that “can generate cash flow without diluting shareholders and provides maximum leveraged exposure to Bitcoin.” Therefore, he argued that the Bitcoin per share metric does not reflect investor expectations.
The timing of the announcement is noteworthy. Strategy, which Saylor leads, recently raised $2.1 billion for a new Bitcoin purchase. Approximately 86% of this funding was provided through a direct issuance of common shares. This is at the heart of Mallers’ criticism: issuing new shares to buy Bitcoin reduces the amount of Bitcoin allocated to existing shareholders, even if the total Bitcoin holdings increase.
The data also indicates that the Bitcoin treasury model is going through a difficult period. Currently, approximately 40% of Bitcoin treasury companies are trading below their net asset value (NAV). Furthermore, more than 60% of these companies purchased Bitcoin at levels above today’s prices.
XXI Capital holds 43,514 BTC, worth approximately $3.8 billion, making it the world’s third-largest institutional Bitcoin holder. The company is backed by strong financial partners such as Cantor Fitzgerald, Tether, and Japan-based SoftBank.
The BTC per share metric measures how much Bitcoin a shareholder theoretically receives. This ratio decreases when companies buy Bitcoin by issuing new shares, creating a dilution effect. Mallers, without naming names, said that some Bitcoin treasury companies have had to dilute shareholders, or even sell Bitcoin, to secure funding. Strategy’s recent purchase reinforced this criticism: the company raised $1.83 billion by selling over 10 million shares. Following the announcement, Strategy shares fell 8% in a single day, bringing their total loss over the past six months to 62%.
Mallers stated that XXI will now aim for “maximum exposure to Bitcoin by generating cash flow without diluting shareholders.” However, he did not share details on how this goal will be achieved, saying clarity will be provided “when the time is right.” Nevertheless, the discontinuation of BTC per share reporting is considered a significant break, given the central role of this metric, which is synonymous with Saylor’s model, in the industry.
*This is not investment advice.
