Author:CryptoSlate
Compiled by: Deep Tide TechFlow
Deep Tide Introduction: When a Bitcoin treasury company's stock price falls below the value of the Bitcoin it holds, the cheapest way to increase Bitcoin exposure per share may not be buying Bitcoin, but rather repurchasing its own stock. UK-listed company B HODL tested this paradox with real money, and the results were surprising—what does this mean for the entire Bitcoin treasury industry?
When a Bitcoin treasury company trades below the value of the Bitcoin it holds, the cheapest way to increase Bitcoin exposure per share might be repurchasing its own stock.
UK-listed company B HODL tested this inversion phenomenon during the first week of its repurchase. The company spent approximately £37,985 (pre-fees) to cancel 823,400 shares, generating an increase in total satoshis per pound per share that was about 24% higher than using the same cash to buy Bitcoin.
This 24% advantage is pre-fee data, and these figures do not show the full picture of net asset value (NAV) growth per share.
B HODL's official dashboard on July 19th showed holdings of 166.487 BTC, a share price of 5.25 pence, and a market capitalization of £7.385 million. Based on the displayed Bitcoin price of £48,237, these holdings were worth approximately £8.031 million, leaving a gap of about £646,000.
Using the latest announced post-cancellation share count and the same share price, the equity value is approximately £7.378 million, about £652,000 or 8.1% lower than the Bitcoin value. Both sides of the comparison are in constant flux.
Why Buying Stock Beats Buying Bitcoin
B HODL's £100,000 share repurchase authorization became effective on July 9th. Disclosures covering purchases on July 9th, 10th, 13th, 15th, and 16th show a total of 823,400 shares, with a calculated weighted average price of 4.613 pence. Pre-fees, these purchases used about 38% of the authorized amount.
Following the announced cancellations, the share count decreased from 141,366,091 to 140,542,691 shares. Keeping the 166.487 BTC unchanged, the total Bitcoin per share increased from 117.77 satoshis to 118.46 satoshis, a gain of 0.69 satoshis or 0.59%.
At the same Bitcoin price of £48,237, £37,985 could purchase approximately 0.787 BTC. Spreading this purchase across the original share count would increase the total satoshis per share by about 0.557, while the buyback delivered an increase of 0.690. Under these matching assumptions, canceling equity increased value per pound spent by about 24%.
Why B HODL Can Buy and Sell Its Own Shares
B HODL is keeping its At-The-Market (ATM) program open while conducting the buyback. Its ATM only allows issuing shares when it is accretive based on the company's modified Net Asset Value (mNAV) framework for Bitcoin.
These instruments together create a capital allocation switch: issue equity when it can increase Bitcoin per share, then repurchase equity when the stock itself offers cheaper Bitcoin exposure.
The company's latest interim balance sheet is historical data, so the first week demonstrates growth in total satoshis per share under stated assumptions, not current NAV per share growth.
For other Bitcoin treasury companies trading below their Bitcoin value per share, this insight is conditional but clear.
Whether this is the correct move still depends on cash reserves, debt, trading liquidity, and operational needs—a discipline increasingly shaping the broader treasury industry.
