Once a company holds Bitcoin on the balance sheet, its investor relations team will field the same questions repeatedly. The best preparation is a written set of model answers, checked against the treasury policy and approved by legal and finance, that every spokesperson uses. This FAQ gives sample answers you can adapt; for the wider communication plan, see communicating a Bitcoin strategy to investors.
Every answer below is a template. Replace the bracketed text with your own facts, and avoid adding anything the policy does not support.
Questions about the decision
Why does the company hold Bitcoin? "The board approved holding Bitcoin as a long-term reserve asset for part of the treasury that is surplus to operating needs. The decision followed a review of alternatives and is governed by a written policy with defined limits."
Is this a bet on the price? "No. We do not make price forecasts. The holding is sized so the company can absorb a severe fall without affecting operations, and it sits within a limit of [X]% of treasury assets."
Why Bitcoin and not another digital asset? "Our policy permits Bitcoin only. The board considered its liquidity, its fixed supply schedule and the depth of institutional custody and execution services." Our article on Bitcoin's 21 million supply cap gives background.
Who decided, and how? "The board approved the strategy on [date] after [two] meetings, with input from our auditors and legal advisers. The audit committee oversees it."
Questions about the size and future plans
How much do you hold? "As of [date] we held [X] Bitcoin, with a cost of [amount] and a fair value of [amount]. We report this every [quarter]."
Will you buy more? "Purchases are made within the board-approved limit. Any increase in that limit would require a new board decision, which we would disclose." Do not hint at future purchases beyond what has been decided.
Would you ever sell? "The policy sets out the circumstances in which the board would consider a sale, including [rebalancing to the limit / a change in treasury needs]. No sale is required to meet operating needs."
Will you borrow or issue shares to buy Bitcoin? Answer exactly as the policy states. If the policy prohibits it: "Our policy does not permit borrowing to buy Bitcoin." If the board has approved a financing route, describe it factually and refer to the relevant disclosure.
Questions about risk and protection
What happens if the price falls sharply? "Our cash floor of [X] months of operating costs is outside the Bitcoin allocation and is unaffected by its price. A fall would show in reported earnings, but would not affect operations or covenants."
Who holds the keys? "Our Bitcoin is held with [a qualified custodian / a multi-party arrangement] chosen after formal due diligence. No single person can move it. We do not disclose security details beyond this."
What if the custodian fails? "Our custody agreement provides that client assets are segregated and held for our benefit. We reviewed this as part of due diligence and re-review it annually." Avoid stronger claims than the legal terms support.
Is the holding insured? State the facts precisely: what is covered, by whom, and what is excluded. Do not imply full coverage if it does not exist.
Keep a single answer document under version control, with the date of the last legal review on the front page. When the policy changes, update the answers the same day.
Questions about Bitcoin on the balance sheet and earnings
Why did earnings swing this quarter? "Under fair value accounting, changes in the value of our Bitcoin are recorded in net income. This quarter's result includes a [gain/loss] of [amount] from that remeasurement. Excluding it, operating results were [summary]." Present any adjusted figure with a clear reconciliation. See ASU 2023-08 fair value accounting.
Does this affect dividends or buybacks? "Capital allocation decisions are made on [operating cash flow / distributable reserves]. The Bitcoin holding does not change our [dividend policy]." Check this against local rules on distributable profits with your advisers.
Are you now a Bitcoin treasury company? Answer factually. If Bitcoin is a minor part of the balance sheet, say so with the percentage. Analysts may compare you with companies whose main business is holding Bitcoin, where metrics such as mNAV are used; explain why that comparison does or does not apply.
Tailoring for different audiences
| Audience | Main concern | Emphasis in answers |
|---|---|---|
| Institutional shareholders | Governance and capital allocation | Limits, board oversight, alternatives considered |
| Sell-side analysts | Earnings and valuation | Fair value effect, reconciliation, disclosure consistency |
| Lenders | Credit quality and covenants | Cash floor, covenant headroom, no borrowing against Bitcoin |
| Retail shareholders at the AGM | Safety and rationale | Plain-language rationale, custody in general terms |
| Employees | Company stability | Operations unaffected, long-term approach |
Rules for spokespeople
- Use only approved answers. If a question is not covered, take it away and respond later.
- Never comment on the future price or on short-term market moves.
- Never disclose security details, signer identities or wallet addresses.
- Keep every answer consistent with published disclosures.
- Log new questions and add answers to the document after review.
Listed companies should check all answers against their disclosure obligations with legal counsel.
How The Bitcoin World helps
We help investor relations and finance teams build and maintain question-and-answer documents that match the company's treasury policy and disclosures, as part of our board advisory work. Execution and custody are carried out by licensed third-party institutions.