UK Bitcoin Company Finds: Buying Back Own Stock Earns 24% More Than Directly Buying Coins
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UK Bitcoin Company Finds: Buying Back Own Stock Earns 24% More Than Directly Buying Coins
In the first five buybacks, for every pound spent by B HODL, the total amount of Bitcoin acquired per share was 24% more than directly purchasing Bitcoin.
Navigating Web3 tides with focused insightsAuthor: CryptoSlate
Compiled by: TechFlow
TechFlow Insights: 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 coins, but 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 may be to repurchase its own stock.
UK listed company B HODL tested this inversion during its first week of buybacks. The company paid approximately 37,985 pounds to cancel 823,400 shares before fees, resulting in a growth in total sats per share per pound spent that was about 24% higher than buying Bitcoin with the same cash.
This 24% advantage is pre-fee data, and these figures do not show the complete Net Asset Value (NAV) per share growth.
B HODL's official dashboard on July 19 showed holdings of 166.487 BTC, a stock price of 5.25 pence, and a market cap of 7.385 million pounds. Calculated at the displayed Bitcoin price of 48,237 pounds, these holdings were worth approximately 8.031 million pounds, leaving a gap of about 646,000 pounds.
Calculated based on the latest announced share count after cancellation and the same stock price, the equity value is approximately 7.378 million pounds, about 652,000 pounds or 8.1% lower than the Bitcoin value. Both ends of the comparison are constantly changing.
Why Buying Stock Beats Buying Bitcoin
B HODL's 100,000-pound buyback authorization took effect on July 9. Disclosures covering purchases on July 9, 10, 13, 15, and 16 show a total of 823,400 shares, with a calculated weighted average price of 4.613 pence. Before fees, these purchases used approximately 38% of the authorized amount.
After announcing the cancellation, the share count decreased from 141,366,091 to 140,542,691. Keeping 166.487 BTC unchanged, total Bitcoin per share rose from 117.77 sats to 118.46 sats, an increase of 0.69 sats or 0.59%.
At the same Bitcoin price of 48,237 pounds, 37,985 pounds could purchase approximately 0.787 BTC. Spreading this purchase across the original share count would increase per share by about 0.557 sats, while the buyback brought an increase of 0.690 sats. Under these matching assumptions, the value accretion per pound for canceling equity is about 24% higher.
Why B HODL Can Buy and Sell Its Own Stock
B HODL keeps its At-The-Market (ATM) offering plan open while repurchasing. Its ATM only allows issuing stock when it has an accretive effect according to the company's Bitcoin modified Net Asset Value (mNAV) framework.
These tools together create a capital allocation switch: issue equity when issuing equity 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 the growth in total sats per share under established assumptions, rather than the growth in current Net Asset Value per share.
For other Bitcoin treasury companies trading below Bitcoin value per share, this implication is conditional but clear.
Whether this is the right move still depends on cash reserves, debt, trading liquidity, and operational needs, a discipline that is increasingly shaping the broader treasury industry.
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