pledgeScoring factors
7
Each factor is weighted and scored 0–10 before blending into a composite.
30% weight30%
NAV Premium / Discount
How far the market price sits from the estimated bitcoin net-asset value per share, in either direction. Trading near NAV scores highest; a large discount (the market doubts the NAV will be realized) or a large premium (speculative demand beyond bitcoin exposure alone) both score lower as the deviation from fair value grows.
Evidence checked
Market price from exchange quotes (Yahoo Finance, StockAnalysis)
BTC-per-share NAV computed from total BTC holdings ÷ shares outstanding × reference BTC price
Premium/discount = (market price − NAV) / NAV
Scoring bands
−5% to +5%: 9–10 (near NAV — market price tracks fair value closely)
−20% to −5% or +5% to +20%: 6–8 (moderate discount or premium)
beyond −20% to −30% or +20% to +30%: 1–4 (extreme discount or premium — large deviation from fair value in either direction)
15% weight≥ 15%
BTC per Share
The amount of direct bitcoin exposure each share represents. Higher BTC per share means the instrument tracks bitcoin more closely, all else equal.
Evidence checked
Total BTC held by the issuer (from SEC filings, press releases, BitcoinTreasuries.net)
Shares outstanding (from SEC filings, market data)
BTC per share = total BTC ÷ shares outstanding
Scoring bands
≥ 0.01 BTC/share: 8–10 (high exposure)
0.001–0.01 BTC/share: 5–7.5 (moderate exposure)
< 0.001 BTC/share: 2–4.5 (diluted exposure)
15% weight≥ 15%
Dilution Rate
Whether the share count is growing, stable, or shrinking. Increasing dilution erodes per-share BTC exposure over time. ATM programs, convertible notes, and secondary offerings all contribute.
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
Management guidance on issuance policy
Scoring bands
Decreasing or stable: 7–10 (shareholder-friendly)
Increasing at moderate pace: 4–6 (some dilution pressure)
Increasing rapidly with large ATM/convertible capacity: 1–3 (significant dilution risk)
15% weight≥ 15%
Governance
Quality of public disclosure, audit standards, and regulatory compliance. Better governance means investors can verify claims independently.
Evidence checked
SEC reporting status (full reporter vs. OTC vs. unlisted)
Disclosure frequency (quarterly 10-Q, annual 10-K, 8-K current reports)
Audit firm name and reputation (Big Four vs. national vs. none)
Bitcoin proof-of-reserves or third-party verification
Scoring bands
SEC reporting, Big Four audit, frequent disclosure: 8–10
SEC reporting, national audit firm: 6–7.5
SEC reporting, no audit firm disclosed: 4–5.5
OTC or limited disclosure: 1–3.5
10% weight≤ 10%
Liquidity
How easily shares can be bought and sold without moving the market. Daily volume and exchange listing tier matter for investors who may need to exit.
Evidence checked
Daily trading volume (from market data sources)
Exchange listing tier (Nasdaq Global Select, NYSE, Nasdaq Capital Market, OTC)
Bid-ask spread when available
Scoring bands
Daily volume > $100M, major exchange: 8–10
Daily volume $10M–$100M, major exchange: 6–7.5
Daily volume $1M–$10M: 4–5.5
Daily volume < $1M or OTC: 1–3.5
10% weight≤ 10%
Fee Structure
Direct costs charged to holders. Most treasury products do not charge management fees, but some have embedded costs, performance fees, or structural drag from operating expenses.
Evidence checked
Management fee (basis points)
Performance fee (percentage)
Other disclosed fees or cost structures
Operating expense ratio for public companies
Scoring bands
No management or performance fee: 8–10
Low management fee (<50 bps), no performance fee: 6–7.5
Moderate fee (50–100 bps): 4–5.5
High fee (>100 bps) or performance fee: 1–3.5
5% weight≤ 10%
Track Record
How long the product has been publicly traded. A longer track record provides more data points for evaluating NAV stability, dividend consistency, and management execution.
Evidence checked
Inception date or first trading date
Dividend payment history (for preferred stock)
BTC accumulation track record over time
Scoring bands
≥ 3 years: 8–10
1–3 years: 5–7
< 1 year: 1–4.5