Author: Andrej Antonijevic, Source: Bitcoin Treasury, Translated by Shaw Jinse Finance. Abstract: This article introduces the Resilient Bitcoin Treasury Company (RBTC), a business model designed to accumulate Bitcoin while minimizing the risk of permanent capital loss. Building on the risk-efficiency ladder of financial instruments and the risk-reward spectrum of corporate strategies, RBTC is equity-based, offers flexibility, and the option to provide periodic returns. Compared to similar products, it represents a low-risk anchor: a stable, innovative tool for long-term Bitcoin accumulation and yield generation. Most Bitcoin Treasury companies today aim to accumulate as much Bitcoin as possible and generate Bitcoin income through financial instruments that generate value. This model should be combined with corporate resilience. A Bitcoin Treasury Reserve company must be able to survive a Bitcoin decline, manage its financing portfolio responsibly, and, if it wishes to expand its business, provide reliable income over time.
This article describes a risk-efficiency ladder of financial instruments used to generate Bitcoin income, the risk-return spectrum of a Bitcoin Treasury company's corporate strategy, and proposes the concept of a Resilient Bitcoin Treasury Company (RBTC): a structure designed to accumulate Bitcoin in an accretive manner while minimizing the risk of permanent capital loss and opening up participation to a broader investor base.
Risk-Efficiency Ladder of Financial Instruments
We first describe the risk-efficiency ladder of the four primary financial instruments used by Bitcoin Treasury Reserve companies to purchase Bitcoin: common stock, convertible bonds, term debt, and perpetual preferred stock.
The x-axis represents issuance efficiency, which measures the return and potential for generating Bitcoin income. Efficiency is defined as the percentage of newly acquired Bitcoin that accrues to existing shareholders after dilution from new financing. In a previous article, we introduced the formula for efficiency: Efficiency = BTC Yield (%) ÷ BTC Purchase Volume Growth (%) Efficiency measures how much earnings per Bitcoin increase when a company raises funds to purchase more Bitcoin. We also present efficiency estimates by instrument category, summarized below: The y-axis shows the independent risk of each instrument. Risk is defined as the risk of permanent loss of capital under prolonged adverse conditions. In other words, if Bitcoin prices remain depressed for an extended period, or if the stock trades at a discount (greater than the acceptable threshold defined in the previous article) for an extended period, how long would it take for the company to go bankrupt or run out of liquidity? The longer the company survives these conditions, the lower the risk, and vice versa. Under an equity-only model, the time to bankruptcy is relatively long. Because there are no coupon or principal repayments, the company may struggle with weakening Bitcoin prices without being forced into bankruptcy. Of course, operating costs remain important, as they determine how long the company can continue operating. In contrast, term debt must pay relatively high coupons and eventually repay principal. If Bitcoin prices decline at maturity, equity must be issued to repay the debt, and the share price falls below the acceptable threshold for the instrument (defined above), resulting in a permanent loss of capital. The figure below shows the risk-efficiency ladder for the four instruments: The above analysis is based on the perspective of a single, independent instrument. Since Bitcoin Treasury Reserve companies typically employ multiple financing instruments, we extend this framework to encompass the corporate-level strategic risk-return spectrum. Before doing so, we first introduce a company design designed to maintain resilience under market conditions: the Resilient Bitcoin Treasury Company (RBTC).
Resilient Bitcoin Treasury Company (RBTC)
Bitcoin is inherently a volatile asset, and high drawdowns are not uncommon. Most Bitcoin Treasury reserve companies recognize this reality and have built sufficiently long-term operating structures to benefit from Bitcoin's expected long-term performance. However, their approaches to achieving this goal vary.
Resilient Bitcoin Treasury Company (RBTC) is designed to minimize the risk of permanent capital loss. Its key features are as follows:
Pure equity financing. RBTC does not use fixed-term debt, convertible bonds, or perpetual preferred stock. Since there are no coupon payments or debt repayments due, there is no external debt that could lead to bankruptcy. Operating costs still exist, but they are manageable and applicable to any structure. This makes RBTC the lowest-risk corporate form for holding Bitcoin. Bilateral Capital Strategy: Willing to sell Bitcoin to cover the discount. As mentioned earlier, the rigid rhetoric of "never selling Bitcoin" carries inherent risks. RBTC operates on a two-way principle: when its shares trade above net asset value, it issues shares to purchase Bitcoin; when its shares trade below net asset value, it is willing to sell Bitcoin and use the proceeds to repurchase shares. Both scenarios result in an increase in the price per Bitcoin, creating a two-way Bitcoin yield. Crucially, this mechanism is independent of Bitcoin's price. Whether Bitcoin prices are depressed (selling Bitcoin at the bottom to fund repurchases) or surging (issuing at a premium to purchase more Bitcoin), the premium/discount relationship itself drives value. Minimizes the risk of permanent loss. Without external financing obligations, RBTC can withstand prolonged bear markets. The trade-offs are clear: while efficiency and return potential are lower than those of debt-based strategies, the risk of permanent capital loss or outright bankruptcy is significantly reduced. Focused on sustainable accumulation. RBTC recognizes that the true advantage lies in holding accumulated Bitcoin assets for the long term. Highly leveraged, high-yield strategies may seem alluring, but their consequences often cut both ways: either amplifying returns or, in adverse circumstances, forcing investors to repay at a significant discount or diluting their assets, leading to permanent capital loss. RBTC sacrifices some yield efficiency to maximize the probability of success, thereby maximizing participation in Bitcoin's long-term appreciation. Adding a Regular Income Layer. The stock market distinguishes between growth stocks and income stocks. To date, Bitcoin Treasury Reserve has solely played a growth role. However, adding a rules-based income policy can reduce investor risk and broaden the investor base. Traditional Bitcoin Reserves typically rely on external investors in convertible bonds, perpetual bonds, or fixed-term debt, which pay coupons for financing. RBTC internalizes this logic: instead of paying interest to external investors, it returns a portion of Bitcoin earnings directly to shareholders. The dividend structure consists of three elements: Initial compounding runway: No fees are paid for the first four years. Distribution cadence: A portion of BTC earnings (e.g., 20%) is distributed every two years. Dividend form: Fiat dividends (BTC are sold, converted to fiat on the record date, and distributed in cash) or stock dividends (new shares are issued equal to the distribution value, diluting some of the BTC earnings but providing income without BTC sales). This policy is highly relevant to investors. Investors currently purchasing Bitcoin Treasury preferred shares might be receiving a coupon rate of 7%-8%. They may prefer a structure that allows them to receive a 20% share of Bitcoin's returns while participating in Bitcoin's long-term price appreciation, all through a low-risk, purely equity-based investment vehicle. Some might argue that investors in Bitcoin Treasury, which currently doesn't pay a dividend, could "manufacture" returns by selling some of their equity. However, this isn't the same thing: doing so always exposes investors to the risk of selling at a price above or below net asset value. In contrast, in the RBTC model, dividends are paid directly at the net asset value on the record date. Broadening Investor Access RBTC could also expand Bitcoin Treasury Reserve's investor base. By offering dividends on top of equity exposure, it could appeal to pension funds and insurance companies seeking a reliable source of income. Income-seeking equity investors cannot access Bitcoin through existing, non-yielding Treasury bonds. Current debt investors (perpetuals, term debt, or convertibles) may prefer lower-risk, equity-based structures with regular returns. RBTC is an innovative model built on sound capital management principles. It combines pure equity financing, a two-way capital strategy, and an optional yield layer to provide investors with a lower-risk, more flexible Bitcoin investment vehicle. Given its philosophy of mitigating bankruptcy risk and its ability to return to NAV through dividends, RBTC can achieve a premium—if not a higher premium, then at least a more stable premium to NAV over time. This provides both a safer way to hold Bitcoin and a more stable platform for generating Bitcoin income. The Risk-Return Spectrum of Corporate Strategy: The analysis of financial instruments and the design of RBTC together form the risk-return spectrum of Bitcoin Treasury companies. A company's position on this spectrum is determined by its financing mix and capital discipline: higher levels of external debt and constraints increase the risk of permanent capital loss; a clearer and more flexible equity base reduces risk. We illustrate this by comparing four Bitcoin Treasury company models: The Resilient Bitcoin Treasury Company (RBTC) employs an equity-led, anti-rigidity model with an optional yield layer. Funding relies entirely on equity issued at a premium, with no convertible bonds, term debt, or collateral pledges. With no coupons or maturity dates, there is no external debt that could trigger bankruptcy, and operating costs are the only fixed liability. Return potential is moderate, driven by issuance efficiency and premium discipline, while the yield option broadens investor appeal. Risk: Low, Return: Medium.
Metaplanet positions itself as Japan's "Bitcoin Treasury" company, pursuing high growth. Its financing mix includes the issuance of equity and shareholder-approved perpetual preferred stock, and it plans to use Bitcoin as collateral for bank financing in future acquisitions. This introduces lender debt risk and ongoing distribution obligations, but also creates additional financing channels. Risk: Medium, Return: Medium-High.
Strategy (formerly MicroStrategy) represents a financial engineering model that achieves scale through complex issuance. It relies on zero-coupon convertible bonds, multiple perpetual preferred stock programs, and ongoing common stock ATM issuances. The layered debt of convertible bonds and preferred stock still increases refinancing and equity dilution risks. Risk: Medium-High, Return: High MARA (Marathon Digital Holdings) began as a mining company and has evolved into a hybrid miner-treasury reserve company. The company's growth and Bitcoin accumulation have been primarily financed through the issuance of large convertible bonds (including a recent zero-coupon bond) and cyclical leverage in its mining operations. This debt-driven model exposes the company to coupon, maturity pressure, and operational volatility. Risk: High, Reward: High (Cyclical) The chart below illustrates the risk-return spectrum of Bitcoin Treasury Reserve's corporate strategy: This chart clearly demonstrates that corporate design isn't simply about maximizing Bitcoin returns. The difference between resilience and fragility lies in the financing mix and the willingness to maintain flexibility. RBTC represents a low-risk anchor on this chart, making it a good option for investors who prioritize stability over leverage-driven outcomes. Conclusion: We have introduced the risk-efficiency ladder of financial instruments, the risk-return spectrum of corporate strategy, and the design of the Resilient Bitcoin Treasury Company (RBTC). Taken together, these perspectives demonstrate that the Bitcoin Treasury Reserve Company's structure can not only achieve growth but also resilience. RBTC provides a stable and innovative model for long-term Bitcoin accumulation and yield generation.
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