The poster-child is Strategy (formerly MicroStrategy / MSTR), which literally reports KPIs like Bitcoin-per-share (BPS) and “BTC Yield” to quantify whether the machine is actually stacking more sats per share, not just stacking BTC. 

The core idea in one line

If a company can raise $ at terms that are “better than” the Bitcoin already backing each share, then using that $ to buy BTC can be accretive: each share ends up representing more BTC than before.

That per‑share BTC growth is what Strategy calls BTC Yield (their KPI). 

The math that makes it “a machine”

Two key definitions (this is the engine room):

Bitcoin‑per‑share (BPS)

\text{BPS} = \frac{\text{Bitcoin holdings}}{\text{Assumed diluted shares outstanding}}

Investopedia describes BPS as the ratio of coins held to assumed diluted shares. 

BTC Yield (Strategy’s KPI)

Strategy defines BTC Yield as the percentage change in BPS from the beginning of a period to the end of the period. 

And “assumed diluted shares” matters because it includes stuff that could turn into shares (convertible notes, options, RSUs, etc.). 

How the flywheel works (why it can feel like “magic”)

  1. Company holds BTC (a BTC treasury).
  2. The stock trades at a premium to the BTC it holds (market loves the story / leverage / liquidity / access).
  3. Company issues capital (common stock, converts, preferreds, etc.).
  4. Uses proceeds to buy more BTC.
  5. If the new capital buys more BTC per new diluted share than the dilution created, then BPS rises → accretion.
  6. Higher BPS + hype can support the premium → step 3 stays possible → repeat.

This is exactly why journalists describe it as a “magical bitcoin buying machine,” but also point out it’s not “yield” like interest/dividends—it’s BTC-per-share growth. 

A stupid-simple example (feel the accretion)

Start:

  • BTC held = 10 BTC
  • Shares = 10
  • BPS = 1.0 BTC/share

Now suppose the market is valuing the company richly, so it can issue 1 new share for proceeds equal to 2 BTC worth of capital.

It issues 1 share, buys 2 BTC:

  • New BTC held = 12 BTC
  • New shares = 11
  • New BPS = 12/11 = 1.0909 BTC/share

Boom: each share now “owns” ~9.1% more BTC than before. That’s accretion.

Flip side (the nightmare):

If it issues shares when the market price implies less than 1 BTC/share, then buying BTC with that raise can be dilutive and BPS falls.

What can break the machine (a.k.a. when it turns from flywheel to woodchipper)

This strategy has real teeth, but also real ways to get wrecked:

1) Premium compression

If the stock stops trading at a premium (or goes to a discount), issuing equity becomes less accretive—or outright dilutive.

2) Capital markets shut

No appetite for converts/preferred/equity? The machine can’t “refuel.”

3) Leverage + obligations

Debt / preferred dividends / refinancing risk can bite hard in drawdowns. (Example: analysts discussed Strategy’s preferred issuance and called it “accretive,” but it’s still a capital-structure decision with tradeoffs.) 

4) BTC dump risk

If BTC price nukes and the company faces liquidity stress, the whole thesis gets tested.

5) KPI confusion

“BTC Yield” sounds like income. It’s not. It’s a ratio change. WSJ explicitly highlights this mismatch vs traditional “yield.” 

How to evaluate a “Bitcoin accretion machine” fast (the hardcore checklist)

If you’re looking at any company pitching this playbook, check:

  • BPS trend (is BTC/share rising over time?)  
  • BTC Yield definition + period (are they measuring apples-to-apples?)  
  • Assumed diluted shares (what’s included? converts/options/etc.)  
  • mNAV / premium (how much are you paying above the BTC pile?)
  • Funding source mix (ATM equity vs converts vs preferred) and the costs/strings.  

Quick contrast: “accretion machine” vs spot BTC / ETF

  • Buying BTC directly: your BTC/share is literally your wallet balance. No dilution, no capital structure, no premium risk.
  • Spot BTC ETF: designed to track BTC; you’re not expecting “BTC-per-share accretion” from corporate finance reflexivity.
  • Accretion machine stock: you’re betting on (a) BTC, plus (b) management’s ability to manufacture BPS growth via financing at favorable terms, plus (c) the market continuing to award a premium.

It can outperform BTC… and it can also face violent snapbacks.

If you want, tell me which angle you mean:

  • “Strategy/MSTR-style accretion machine” (BTC per share flywheel), or
  • “Stack sats via yield/arbitrage” (lending, options, mining, etc.)

I can go full deep-dive either way.