BTC ARR (bitcoin annualized return) vs cost of capital

The yardstick that decides whether a treasury company's leverage helps or hurts. BTC ARR is the company's bitcoin annualized rate of return; the cost of capital is the blended rate on its debt and preferred. Saylor's framing: if BTC ARR exceeds the cost of capital, a well-capitalized Bitcoin Treasury Company should outperform holding bitcoin directly.

This is why liability quality matters more than liability size. Cheap, long-dated capital deployed into bitcoin that compounds faster than that capital costs is accretive; expensive, short-dated capital is not. It is the economic engine behind Amplification.