Strive Vice President Joe Burnett Says Bitcoin Treasury Companies Can Use Premiums to Increase Per-Share Bitcoin Holdings

Strive Vice President Joe Burnett said altcoins usually represent tokenized exposure to protocol fees or staking economics, and that their appreciation is often driven by speculation and limited liquidity. According to Odaily, he said Bitcoin treasury companies are fundamentally different because common stock represents a residual claim on a real balance sheet.Burnett said that if Bitcoin rises faster than a company’s cost of capital, the company can use dollar-denominated debt to buy more Bitcoin and increase net asset value per share faster than Bitcoin itself. He added that a premium or discount to net asset value creates capital market options, including issuing shares to buy Bitcoin, repurchasing stock when shares trade at a discount, and using debt to expand Bitcoin holdings.He also said these mechanisms can work together and do not require Bitcoin to rise for the strategy to function. Burnett compared the setup with Bitcoin futures, saying futures often trade at a premium to spot because demand for leveraged long exposure can exceed demand on the other side of the trade.Burnett said the premium itself can have an effect because a higher premium creates more room to increase per-share Bitcoin holdings, which may support a higher premium and further growth in per-share Bitcoin holdings. He said the issue is not whether a premium should exist, but how large it should be.