Equity Methodology

How Pledge scores Bitcoin treasury equities.

This page explains the seven-factor scoring model used to rank BTC treasury equities like Strategy (MSTR), Metaplanet (3350.T), and Semler Scientific (SMLR). It covers what each factor measures, how it is scored, where the data comes from, and what the methodology cannot capture.

Composite scores range from 0 to 10. 7 weighted factors sum to 100%. Data checked Jun 21, 2026. Past performance does not guarantee future results.

Compare equities Lender methodology

Scoring factors

Each factor is weighted and scored 0–10 before blending into a composite.

Total weight

100%

Factor weights sum to 100%. No hidden adjustments.

Sources per product

SEC/TSE filings, press releases, market data, and third-party cross-checks.

Limitations

Documented

NAV estimates, data lag, currency risk, and acquisition caveats are listed explicitly.

Scoring factors

Seven weighted factors determine each equity's composite score.

Every factor is scored 0–10 and then multiplied by its weight. The weighted scores sum to the overall composite score (0–10). No hidden adjustments.

25% weight≥ 20%

NAV Premium / Discount

How much the market capitalization deviates from the estimated bitcoin net-asset value per share. A discount means the market values the equity below its BTC holdings; a premium means investors are paying above BTC-only NAV for operating-business value, leverage, or speculative momentum.

Evidence checked

Market capitalization from exchange quotes (Yahoo Finance, StockAnalysis)

BTC-per-share NAV computed from total BTC holdings ÷ shares outstanding × reference BTC price

Premium/discount = (market cap − BTC market value) / BTC market value

Scoring bands

−10% to +10% (near NAV): 9–10 (fairly valued — each dollar buys close to a dollar of BTC)

−30% to −10% or +10% to +30% (moderate deviation): 6–8.5 (a discount or premium that is still defensible)

−50% to −30% or +30% to +50% (large deviation): 3.5–6 (deep discount may signal a value trap, credit concern, or skepticism; large premium means less BTC per dollar)

< −50% or > +50% (extreme deviation): 1–3.5 (extreme discount or premium — symmetric penalty for being far from NAV in either direction)

20% weight≥ 20%

BTC per Share

The amount of direct bitcoin exposure each common share represents. Higher BTC per share means the instrument tracks bitcoin more closely, all else equal.

Evidence checked

Total BTC held by the company (from SEC filings, press releases, BitcoinTreasuries.net)

Shares outstanding (from SEC filings, market data)

BTC per share = total BTC ÷ shares outstanding

Scoring bands

≥ 0.001 BTC/share: 8–10 (high exposure)

0.0001–0.001 BTC/share: 5–7.5 (moderate exposure)

< 0.0001 BTC/share: 2–4.5 (diluted exposure)

15% weight10–15%

Leverage Ratio

The proportion of total debt to BTC market value. Higher leverage amplifies both upside and downside. The leverage ratio captures convertible notes, term loans, and other borrowings relative to the BTC treasury.

Evidence checked

Total debt from SEC filings (10-K, 10-Q, 8-K)

BTC market value at reference price

Leverage ratio = total debt / BTC market value

Convertible note details from prospectuses and 8-K filings

Scoring bands

≤ 0.05 (very low leverage): 8–10

0.05–0.15 (low leverage): 6–7.5

0.15–0.30 (moderate leverage): 4–5.5

> 0.30 (high leverage): 1–3.5

15% weight10–15%

Dilution Trajectory

Whether the share count is growing, stable, or shrinking. Companies that issue large volumes of shares through ATM programs, convertible notes, or stock acquisition rights dilute per-share BTC exposure over time. This factor penalizes aggressive dilution even when it funds BTC purchases.

Evidence checked

Shares outstanding trend (current vs. prior period)

Active ATM programs and capacity disclosed in SEC filings

Convertible note and warrant overhang from prospectuses

Stock acquisition rights and moving-strike warrants (especially for non-U.S. issuers)

Management guidance on issuance policy

Scoring bands

Decreasing, flat, or low net issuance (buybacks or minimal share growth): 8–10 (shareholder-friendly)

Increasing at a moderate pace: 4–7.5 (some dilution pressure, partly offset by BTC purchased)

Increasing rapidly with large ATM/convertible/warrant capacity: 1–3.5 (significant dilution risk)

10% weight10–15%

Operating Business

The quality and scale of the non-BTC operating business. A strong operating business provides downside protection, revenue diversification, and an alternative path to value creation beyond BTC appreciation.

Evidence checked

Revenue TTM from SEC filings and earnings releases

Business segment descriptions from 10-K annual reports

Revenue growth trajectory and margin profile

Whether BTC treasury or operating business drives the investment case

Scoring bands

Large, profitable operating business independent of BTC: 8–10

Meaningful operating business with growing revenue: 5–7.5

Small operating business relative to BTC treasury: 3–4.5

Negligible or non-existent operating business: 1–2.5

10% weight10–15%

Liquidity

How easily shares can be bought and sold without moving the market. Daily volume, exchange listing tier, and bid-ask spread determine whether investors can enter and exit positions efficiently.

Evidence checked

Average daily trading volume in USD (from market data sources)

Exchange listing tier (Nasdaq Global Select, NYSE, TSE Standard, OTC)

Bid-ask spread when available

Scoring bands

Daily volume > $1B, major exchange: 8–10

Daily volume $50M–$1B, major exchange: 6–7.5

Daily volume $5M–$50M: 4–5.5

Daily volume < $5M or OTC: 1–3.5

5% weight≤ 5%

Management

Capital allocation track record and leadership quality. Management teams that have consistently executed a BTC treasury strategy, communicated transparently, and managed the capital stack effectively score higher.

Evidence checked

CEO name and tenure from SEC filings and company websites

BTC accumulation track record over time

Capital markets execution (convertible notes, ATM programs, preferred stock)

Management commentary from earnings calls and shareholder letters

Scoring bands

Long track record of BTC treasury execution, strong communication: 8–10

Meaningful BTC accumulation with moderate execution: 5–7.5

Early-stage or inconsistent track record: 3–4.5

Limited or untested management: 1–2.5

Composite formula

The overall score is a simple weighted sum.

No machine learning, no secret sauce. Each factor score (0–10) is multiplied by its weight, and the results are added together.

Overall = Σ (factor_score × factor_weight)

NAV Premium / Discount: score × 25%

BTC per Share: score × 20%

Leverage Ratio: score × 15%

Dilution Trajectory: score × 15%

Operating Business: score × 10%

Liquidity: score × 10%

Management: score × 5%

Example (MSTR): NAV Premium 7.2×25% + BTC/Share 8.5×20% + Leverage 6.8×15% + Dilution 2.5×15% + Operating Biz 7.0×10% + Liquidity 10.0×10% + Management 9.0×5% = 7.0

Data sources

Every data point is traced back to a named source.

Primary sources are SEC filings, TSE disclosures, and official company releases. Market data and third-party aggregators are used as cross-checks, not primary sources.

Data source

SEC EDGAR filings

10-K annual reports, 10-Q quarterly reports, 8-K current reports, and prospectuses. These are the primary source for BTC holdings, share count, dilution, debt, revenue, and governance disclosures for U.S.-listed equities.

Data source

Company press releases and investor relations pages

Official announcements of BTC purchases, ATM program updates, acquisition notices, and strategic changes. Cross-referenced with SEC filings when possible.

Data source

Tokyo Stock Exchange disclosures

For Japan-listed equities (Metaplanet), TSE disclosure documents, stock acquisition right filings, and official company notices serve as the primary source for BTC holdings and capital structure data.

Data source

BitcoinTreasuries.net and CoinGecko

Third-party aggregators of public company BTC holdings. Used as cross-checks against company-reported figures, not as primary sources.

Data source

Market data providers

Yahoo Finance, StockAnalysis.com, and GoMarketCap for market prices, trading volume, shares outstanding, and valuation snapshots. Market data is treated as "partial" verification because prices move intraday.

What moves a score

Scores change when the underlying data changes or when the methodology is corrected.

These are the conditions that trigger a score review.

Review trigger

BTC holdings change materially

A large purchase or sale of bitcoin by the company changes the NAV per share and BTC-per-share metrics.

Review trigger

Share count changes significantly

ATM program executions, convertible note conversions, stock acquisition right exercises, or secondary offerings change dilution and per-share metrics.

Review trigger

Market cap moves sharply relative to BTC value

A large change in premium/discount changes the NAV premium factor score even if underlying BTC holdings are unchanged.

Review trigger

Debt or leverage changes

New convertible note issuances, debt repayments, or refinancings change the leverage ratio and credit profile.

Review trigger

Operating business changes materially

Revenue growth, margin changes, acquisitions, or business pivots change the operating business score.

Review trigger

The methodology is corrected

If a scoring rule or weighting is adjusted, the change is noted on this page with an explanation of why.

Limitations

What this methodology does not capture.

A scoring model is only as good as its inputs. These are the known gaps — they are documented here rather than averaged away.

NAV per share is an estimate using a reference BTC price and does not include all corporate assets, liabilities, debt, preferred stock, taxes, warrants, or operating costs.

BTC holdings data may lag real-time by days or weeks depending on SEC filing and press release timing.

Market data (price, volume, market cap) reflects a point-in-time snapshot and may not represent current conditions.

Scores for equities with less than one year of trading history are inherently less reliable.

The methodology does not capture issuer credit risk, legal risk, DOJ or regulatory investigation risk, or acquisition risk beyond what is publicly disclosed.

Common equity holders are last in the capital stack behind debt, preferred stock, and other obligations.

Non-U.S. equities (e.g., Metaplanet) involve currency risk, different disclosure standards, and different shareholder protections.

Acquired or delisted equities (e.g., Semler/Strive) show historical data that may not be directly investable.

NAV premium/discount for equities with significant operating businesses may reflect business value rather than pure BTC exposure.

Use these pages alongside the methodology.

The methodology connects to the comparison product, the treasury methodology, the lender methodology, and the disclosure policy.

Compare

Compare treasury equities

Side-by-side comparison of MSTR, Metaplanet, and Semler with sortable scores and product cards.

Treasuries

Treasury methodology

The scoring model for BTC treasury products like preferred stock (STRC, SATA) and common equity vehicles (XXI, NAKA).

Lenders

Lender methodology

The main methodology page covers BTC-backed lending scores, verification rules, and disclosure boundaries.

Disclosure

Read the disclosure policy

Commercial relationships, affiliate fees, and how monetization stays separate from rankings.

Not investment advice. Pledge provides comparison data for educational purposes only. All comparison data is a dated snapshot checked Jun 21, 2026. Past performance does not guarantee future results.

Affiliate disclosure. Pledge currently does not earn affiliate or referral fees from any product listed on this page. If that changes, monetized links will carry a clear ↗ AFFILIATE marker.

Data accuracy. NAV estimates use a reference BTC price and may not reflect all corporate assets, liabilities, debt, preferred stock, taxes, warrants, or operating costs. Market data is point-in-time and may be delayed.

Securities risk. Common equity products are securities subject to market risk, credit risk, dilution risk, currency risk (for non-U.S. listings), and regulatory risk. Scores do not capture all relevant risks. Read the full limitations section above.

Acquired or delisted equities. Some equities in the comparison (e.g., SMLR/Semler) may no longer trade independently due to acquisitions. Historical metrics are shown for comparison purposes only. Verify current trading status before making investment decisions.

Also Compare

BTC-Backed Loans BTC Treasuries BTC Equities BTC ETFs BTC Custodians Stablecoins

How Pledge scores Bitcoin treasury equities.

Composite scores range from 0 to 10. 7 weighted factors sum to 100%. Data checked Jun 21, 2026. Past performance does not guarantee future results.

Scoring factors

Each factor is weighted and scored 0–10 before blending into a composite.

Total weight

100%

Factor weights sum to 100%. No hidden adjustments.

Sources per product

SEC/TSE filings, press releases, market data, and third-party cross-checks.

Limitations

Documented

NAV estimates, data lag, currency risk, and acquisition caveats are listed explicitly.