Bitcoin Coverage Ratio Calculator
“The measure of forward solvency is the Bitcoin Coverage Ratio (BCR): BTC reserve value over annual dividend obligation, in years of forward coverage.” Compute it for STRC, SATA, or your own inputs, against the drawdown benchmarks from the paper that defined it.
The BTC price moves live; reserve sizes and dividend obligations come from SEC filings and issuer disclosures and change with filings, not continuously. Each figure on this page carries its own as-of date so you can always tell which parts are current.
Data as of Aug 28, 2026 · Source: SEC filings, issuer disclosures, exchange data
Against the Observed Drawdowns
The paper backtests a stripped pure-play model — no cash, no capital markets access, dividends funded entirely from BTC sales — against four observed Bitcoin drawdowns, and reports the required starting BCR for each regime. Those values are measured at the regime peak day, before the drawdown begins: the worst possible entry point.
A current BCR and a required starting BCR are therefore not directly comparable. Per the paper (§5.2), current coverage is normalized to peak first — peak-equivalent BCR ≈ current BCR × (ATH price ÷ current price) — and the scale below plots the peak-equivalent BCR against the paper's published values. The comparison is arithmetic, nothing more.
At these inputs, normalized to peak, the peak-equivalent BCR of 61.56x (current BCR 38.42x × ATH price ÷ current price) is at or above the required starting BCR of all four backtested regimes, including the highest, 11.0x (Mt. Gox 2014).
Logarithmic scale from 1x; the right end tracks the plotted value so it always sits on the scale.
True North contributors include professionals affiliated with Strive, Inc. (Nasdaq: ASST), a Bitcoin treasury company and issuer of SATA preferred stock. True North maintains editorial independence. All analysis reflects True North's views, not those of any affiliated entity. Coverage of all digital credit instruments follows the same analytical methodology regardless of issuer. This is not financial advice.
Disclaimer: The Bitcoin Coverage Ratio shown here is a mechanical calculation — BTC reserve value divided by annual dividend obligation — applied to the inputs displayed, per the definition in the Fairbanks paper. It is True North's rendering of that model, not a rating agency assessment, a solvency opinion, or a forecast. Benchmark comparisons are arithmetic against the paper's published required starting BCRs and are not investment recommendations. Dividends on the instruments referenced are paid when, as, and if declared by each issuer's board of directors; they are discretionary. The instruments tracked here provide only a preferred claim on the residual assets of the issuing company and are not collateralized by Bitcoin holdings. This tool is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Always verify data from primary sources before making investment decisions.
What Is the Bitcoin Coverage Ratio?
The Bitcoin Coverage Ratio (BCR) is a forward-coverage statistic for perpetual preferred equity issued by a Bitcoin treasury company: the value of the issuer's BTC reserve divided by its annual preferred dividend obligation, read in years. It was introduced by Jackson Fairbanks in Perpetual Preferred Equity Against Bitcoin: Required Coverage Across Observed Drawdowns (2026), which backtests the ratio against four observed Bitcoin drawdowns. The BCR definition page carries the verbatim definition and abstract, and the interactive coverage surface maps required starting BCR across drawdown depth and duration.
BCR collapses the preferred-to-reserve ratio and the dividend rate into a single number. That makes it easy to compute from public figures — which is what this calculator does, using the same instrument truth layer that powers the Digital Credit Dashboard.
How to Use the Calculator
- Pick a preset — STRC (Strategy) or SATA (Strive) — or type your own figures
- Check the BTC price indicator: green means live exchange data; gray means a dated snapshot
- Adjust any input; the current BCR, peak-equivalent BCR, and benchmark comparison recompute immediately
- Read the peak-equivalent BCR against the four required-starting-BCR markers from the paper — that is the comparable quantity, since the paper measures required coverage at the regime peak
Editing an input away from a preset switches the page to “Custom inputs” and drops that figure's provenance label — as-of dates on this page only ever describe the filed figures, never your edits.
Methodology
Formula: current BCR = BTC reserve value ÷ annual dividend obligation, where reserve value is the BTC count times the BTC price shown. The unit is years of forward coverage. Primary failure occurs at BCR<1x, where the reserve cannot cover one forward year of obligation. No smoothing, no interpolation, no adjustments.
Normalization to peak: the paper's required starting BCRs are measured at the regime peak day, the worst possible entry point, so a current BCR is not directly comparable to them. Per the paper's §5.2, the benchmark comparison uses the peak-equivalent BCR ≈ current BCR × (ATH price ÷ current price) — “a current-market BCR translated to its peak-day equivalent.” The normalization is conservative: it does not account for obligations paid since the peak. The ATH price is the maximum daily close in the same committed price series the snapshot price comes from (the paper's drawdown measurements also use daily closes), and it renders with its date. When the current price is at or above that ATH, current BCR and peak-equivalent BCR coincide. One consequence of the algebra worth naming: below the ATH, the current price cancels out — peak-equivalent BCR equals the reserve valued at the ATH price divided by the obligation — so it moves with filings and with new price highs, not with day-to-day price. The current BCR is what the live price moves.
Data sources: BTC reserve counts and annual dividend obligations come from SEC filings and issuer disclosures and update when new filings are ingested; the BTC price comes from exchange data via a live feed with a dated daily-close snapshot as fallback. Every figure carries its own as-of date. A failed or stale feed is shown as such — this page never renders a fabricated or silently stale number.
Denominator: the Strategy preset uses the issuer's reported total annual dividend obligation across all five preferred series, because every series' dividends draw on the same reserve. Strive's only preferred series is SATA. Preset figures currently loaded:
What it does NOT model: cash reserves, capital markets access, debt and interest obligations, convertible structures, taxes, issuer discretion over declarations, or future rate changes — the obligation input assumes currently declared rates continue. The paper's benchmarks come from a deliberately stripped model and are upper bounds within the observed depth-duration space; they are not predictions about future drawdowns.
Benchmark provenance: the four required starting BCRs (4.0x, 7.6x, 10.5x, 11.0x) and each regime's depth and peak-to-recovery duration are published values from the paper's Table 1 and Section 6, reproduced as constants. They change only if the paper is revised.