Revolutionize Your Investment Strategy with This Genius Bitcoin Metric!

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Ah, dear readers, it seems the world of Bitcoin and stocks is rather like a game of cards, where everyone thinks they have the ace up their sleeve, but few realize they’re playing with jokers. Enter Jeff Park, who’s decided that the old metrics we all love to toss around like confetti—such as “BTC per Share”—are just a tad misleading. Imagine being given a pie chart and being told it’s a pizza. You’d feel rather cheated, wouldn’t you? 🎭

The Problem With “BTC Per Share”

According to Park, the venerable “BTC per Share” (BPS) is, in fact, a bit of a charlatan, much like a magician who makes his audience believe he’s conjured a rabbit when really he’s stuffed it up his sleeve. You see, when companies like MicroStrategy (that’s MSTR to those in the know) issue mountains of debt, the Bitcoin on their balance sheet increases, but—surprise!—the number of shares remains as stubbornly constant as the family silver. This results in a BPS ratio that looks more glittery than a New Year’s Eve disco ball but hides the true picture. Ah, the sweet scent of financial alchemy! 🪄

Let’s say MSTR raises a princely $500 million in debt to gobble up some more BTC. The numerator of the BPS (that’s the Bitcoin) goes up, while the denominator (the shares outstanding) stays as it is. Suddenly, the company looks far richer in Bitcoin per share than it really is. It’s a bit like declaring that your goldfish is a whale because it’s swimming in a rather large tank. But what you don’t see is the tidal wave of risk that’s lurking beneath. Financial engineering, my friends—it’s all smoke and mirrors! 💰

Why “BTC Yield” Is Misleading

Next up, we have the infamous “BTC Yield,” which, according to Park, is as misleading as a weather forecast predicting sunshine while you’re getting soaked in a downpour. People love to toss around this term, claiming it’s the increase in Bitcoin per share over time. But, as Park rightly points out, it’s a bit like bragging about your country’s GDP growth rate without mentioning whether the average citizen’s pocketbook is actually any fatter. Not very helpful, is it? 🤔

BTC Yield doesn’t tell you how much Bitcoin has been added per share, and—wait for it—it often doesn’t bother to annualize the figure or even show you how much cash you’re actually pocketing. I mean, who doesn’t love a metric that’s as vague as your uncle’s explanation of how he ‘accidentally’ lost money on his last holiday? 😏

Park, the ever-diligent financial sleuth, urges us to forget about the rate of change and focus on how much BTC was actually added per share. A revolutionary thought, if you ask me! 🧠

Introducing “True Yield”

And now, drumroll please, the pièce de résistance! Park introduces us to the “True Yield”—a formula that cuts through all the confusion like a hot knife through butter:

True Yield = % Change in BTC ÷ % Change in Shares Outstanding

This, my dear investor, is the metric that tells you how much Bitcoin you’ve actually pocketed relative to how much your shares have been diluted. It’s like seeing through a foggy window and finally getting a good look at what’s on the other side: the cold, hard truth. And trust me, this is exactly what you need when evaluating companies like MSTR and SMLR (Semler Scientific) during their “aggressive” capital maneuvers. Talk about clarity! 🧐

Conclusion

In the end, Jeff Park’s framework is like a sturdy walking cane for the wobbly investor, offering a smarter, clearer way to gauge Bitcoin exposure in the world of stocks. It shifts you from the superficial allure of catchy ratios to a much more sensible approach—one where you focus on real value creation rather than the smoke-and-mirrors show put on by flashy metrics. Who said finance couldn’t be entertaining? 😉

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2025-05-03 11:28