Firms Leverage Bitcoin Reserves to Redefine Shareholder Value Metrics

Companies Reap Profits as Cryptocurrency Reserves Boost Stock Value

Recent developments in the corporate sector highlight a growing trend where firms are leveraging cryptocurrency reserves to enhance shareholder value. Empery Digital, a Nasdaq-listed Bitcoin treasury firm, completed a $14.5 million share buyback program, repurchasing approximately 2 million shares at prices below net asset value (NAV). This move increased Bitcoin per share for shareholders, as the company now holds 4,081 BTC, valued at $480 million, with an average purchase price of $117,517 per coin Empery Digital Completes $14.5M Share Buyback^[1]. The buyback was funded under an authorized $100 million program, supported by a revolving credit facility with Galaxy Digital LLC, signaling a strategic focus on capital efficiency Empery Digital Announces Update on Share Repurchase Program^[2].

ZOOZ Power Ltd., a dual-listed company on Nasdaq and the Tel Aviv Stock Exchange (TASE), further exemplified this trend by securing shareholder approval for an $180 million private placement to fund a Bitcoin treasury strategy. The firm plans to allocate 95% of net proceeds—approximately $171 million—to acquire around 1,470 BTC, positioning it among the top 50 public Bitcoin holders globally ZOOZ Shareholders Approve Previously Announced $180 Million Private Placement^[3]. This initiative, backed by institutional investors like Pantera Capital and FalconX, aims to create long-term value through direct Bitcoin exposure. ZOOZ’s stock surged over 65% following the approval, reflecting investor confidence in its pivot to a crypto-centric model ZOOZ Power Shares Surge After Approval of Bitcoin Reserve Strategy^[4].

The strategic rationale behind these moves centers on optimizing capital structure to align with Bitcoin’s volatility and growth potential. Empery Digital’s management emphasized that repurchasing shares below NAV enhances equity value by increasing Bitcoin per share, a metric critical to investor returns Empery Digital Accelerates Share Repurchases: $18.8 Million in Shares Bought Back^[5]. Similarly, ZOOZ’s CEO, Jordan Fried, highlighted the dual-listed structure as a competitive advantage, enabling the firm to scale Bitcoin holdings while catering to both U.S. and Israeli markets ZOOZ Power Leaps as Investors Back Bold Bitcoin Strategy^[6].

Financial metrics underscore the impact of these strategies. Empery’s Bitcoin NAV (Net Asset Value) has risen as share repurchases reduce the denominator in the BTC-per-share calculation, while ZOOZ’s projected Bitcoin NAV post-funding is expected to bolster its enterprise value. Analysts note that the market-to-fair book value (MFBV) metric, which compares a company’s market cap to its net Bitcoin holdings minus debt, is gaining traction as a valuation tool for crypto treasuries A New Way To Value Bitcoin Treasury Companies^[7]. For instance, ZOOZ’s MFBV is anticipated to reflect a premium as its Bitcoin acquisition progresses, assuming stable or rising BTC prices.

The broader market response has been positive, with both companies leveraging their treasury strategies to attract institutional and retail investors unable to directly hold Bitcoin. Empery’s share price has shown resilience amid crypto market fluctuations, while ZOOZ’s post-approval surge underscores the appetite for firms adopting innovative capital allocation models. However, risks remain, including regulatory scrutiny and Bitcoin’s price volatility, which could affect the sustainability of these strategies How Companies Measure Bitcoin Strategy Success: Inside the Metrics That Matter^[8].

As more companies explore Bitcoin treasury models, the focus on metrics like BTC yield, BTC gain, and MNAV is likely to intensify. These tools provide clarity on how effectively firms are deploying capital to maximize shareholder returns in a rapidly evolving asset class. The success of Empery and ZOOZ highlights a paradigm shift in corporate finance, where digital assets are increasingly viewed as strategic reserves to drive long-term growth.