Treasury Companies vs. Miners vs. Spot ETFs: Three Paths to Public-Market Bitcoin Exposure
TL;DR: Public markets give investors three very different ways to get Bitcoin exposure.
- Treasury companies hold BTC on their own balance sheets and report under new fair-value accounting.
- Miners earn BTC by running energy-intensive infrastructure; their cash flows hinge on “hash price,” energy costs, and the halving cycle.
- Spot ETFs/ETPs hold BTC in a regulated fund wrapper and aim to track price net of fees.
This guide breaks down how each works, key risks, and how to compare them, plus where a pure-treasury operator like Matador fits in.
1) Treasury companies: direct, on-balance-sheet BTC
What they are. Public companies whose core strategy includes buying and holding bitcoin as a treasury asset (some are pure-play treasury operators). Under the FASB’s ASU 2023-08, U.S. GAAP filers now measure in-scope crypto assets at fair value with changes in earnings, with expanded, investor-friendly disclosures and an effective date for fiscal years beginning after Dec 15, 2024 (early adoption permitted).
Why investors like them. You’re getting spot BTC exposure on a company’s balance sheet, often with leverage or staged financing that can accelerate accumulation in downturns (and amplify outcomes both ways).
How to evaluate them. Track Bitcoin-per-share (BPS), cost basis, financing mix (convertibles, facilities, shelves/ATMs), custody and disclosure cadence under ASU 2023-08.
Case study , Matador (TSXV: MATA). In July 2025, Matador announced a USD $100M secured convertible-note facility (with USD $10.5M funded at close) to scale its bitcoin treasury, followed by purchase updates that disclose total BTC held. This is a textbook “fund, buy, disclose” model for a pure-treasury operator.
2) Bitcoin miners: operational beta to hash price & energy
What they are. Infrastructure companies that convert electricity into hash rate to earn block rewards (subsidy + transaction fees). Miner revenue is often summarized via hash price, expected revenue per unit of hash power, so cash flows depend on BTC price, fees, network difficulty, and power costs.
The halving effect. On April 20, 2024, the block reward fell from 6.25 BTC to 3.125 BTC, instantly cutting new issuance and pushing miners to optimize energy, scale efficiently, or diversify revenue (e.g., curtailment credits, hosting).
Real-world signals.
- Riot has highlighted substantial power and demand-response credits in Texas, showing how power-market strategy can offset revenue shocks.
- Core Scientific restructured and re-listed on Nasdaq in Jan 2024, underscoring both sector cyclicality and scale persistence among top operators.
Why investors like them. Potential operating leverage to BTC upcycles and optionality from fee spikes (e.g., protocol activity increasing transaction fees). But note: when fees dwindle, subsidy dominates miner revenue, tightening margins post-halving.
3) Spot Bitcoin ETFs/ETPs: regulated, custodied exposure
What they are. Funds that hold spot BTC and issue shares designed to track bitcoin’s price (minus fees). The U.S. approved multiple spot bitcoin ETPs on Jan 10, 2024, a watershed for mainstream access.
Plumbing matters. In July 2025, the SEC permitted in-kind creations/redemptions for crypto ETPs, aligning them more closely with traditional ETF mechanics and potentially improving spreads and tax efficiency for large flows.
Why investors like them. Simplicity (no wallets or keys), institutional custody, and exchange liquidity. Trade-offs: expense ratios, potential tracking error, and no operating leverage like miners. Background explainer: how crypto ETFs work and where tracking differences can arise.
Side-by-side: What actually drives returns?
- Treasury companies → Predominantly spot BTC exposure + financing effects (convertible terms, facility draw timing) and dilution math. Accounting now shows fair-value swings in earnings with clearer disclosure tables.
- Miners → Exposure to BTC price, transaction fees, network difficulty, energy price/hedges, and capex scale; the halving structurally reduces issuance, pressuring margins unless offset.
- Spot ETFs/ETPs → BTC price minus fees and structural frictions (creation/redemption mechanics now improved post in-kind approval).
Which one fits which goal?
- “I want clean, custodied price exposure for portfolios.” → Spot ETFs/ETPs. You get regulated fund shares, exchange liquidity, and operational simplicity, ideal for RIAs, mandates, or treasury “dry-powder” policies.
- “I want upside with operating leverage to the network.” → Miners. In bull cycles, expanding margins and fee spikes can juice cash flows; in bear or post-halving periods, high-cost miners struggle.
- “I want direct coin exposure with a compounding per-share story.” → Treasury companies. Evaluate BPS growth, financing efficiency, and disclosure cadence. Matador’s staged facility + frequent treasury updates exemplify this approach.
Bitcoin is forging a financial order governed by mathematics, not politics. Click to learn more.
Due-diligence checklist (clip this)
For treasury companies
- BPS trend (using diluted shares), cost basis, fair-value disclosures under ASU 2023-08, custody and control descriptions.
For miners
- Hash price sensitivity, all-in power cost, fleet efficiency, curtailment/credit strategy, capex plan through halving cycles (and evidence of execution from recent filings).
For ETFs/ETPs
- Expense ratio, creation/redemption mechanism (in-kind vs cash), AUM/flows, primary custodian, historical tracking.
Frequently Asked Questions
Are spot ETFs the same as owning coins?
Economically close, but not identical: you hold fund shares, pay an expense ratio, and rely on the fund’s custody and operations. Benefits include exchange liquidity and institutional safekeeping.
Do miners always outperform BTC in bull markets?
Not always. Outperformance depends on energy costs, scale, fee tailwinds, and balance-sheet health. Poorly hedged or high-cost miners can lag even when BTC rallies.
How do treasury companies avoid “dilution creep”?
By pacing raises/draws and reporting BPS consistently so investors see whether BTC per share is compounding. ASU 2023-08 helps with standardized fair-value tables.
Bottom line
- Spot ETFs/ETPs deliver simple, custodied price exposure.
- Miners add operating leverage, and operational risk, to that exposure.
- Treasury companies give you direct coins + corporate finance, where BPS growth separates disciplined operators from the rest. For a North American pure-play template, note Matador’s facility-backed program and regular holdings updates.
Treasury Companies vs. Miners vs. Spot ETFs: Three Paths to Public-Market Bitcoin Exposure
TL;DR: Public markets give investors three very different ways to get Bitcoin exposure.
- Treasury companies hold BTC on their own balance sheets and report under new fair-value accounting.
- Miners earn BTC by running energy-intensive infrastructure; their cash flows hinge on “hash price,” energy costs, and the halving cycle.
- Spot ETFs/ETPs hold BTC in a regulated fund wrapper and aim to track price net of fees.
This guide breaks down how each works, key risks, and how to compare them, plus where a pure-treasury operator like Matador fits in.
1) Treasury companies: direct, on-balance-sheet BTC
What they are. Public companies whose core strategy includes buying and holding bitcoin as a treasury asset (some are pure-play treasury operators). Under the FASB’s ASU 2023-08, U.S. GAAP filers now measure in-scope crypto assets at fair value with changes in earnings, with expanded, investor-friendly disclosures and an effective date for fiscal years beginning after Dec 15, 2024 (early adoption permitted).
Why investors like them. You’re getting spot BTC exposure on a company’s balance sheet, often with leverage or staged financing that can accelerate accumulation in downturns (and amplify outcomes both ways).
How to evaluate them. Track Bitcoin-per-share (BPS), cost basis, financing mix (convertibles, facilities, shelves/ATMs), custody and disclosure cadence under ASU 2023-08.
Case study , Matador (TSXV: MATA). In July 2025, Matador announced a USD $100M secured convertible-note facility (with USD $10.5M funded at close) to scale its bitcoin treasury, followed by purchase updates that disclose total BTC held. This is a textbook “fund, buy, disclose” model for a pure-treasury operator.
2) Bitcoin miners: operational beta to hash price & energy
What they are. Infrastructure companies that convert electricity into hash rate to earn block rewards (subsidy + transaction fees). Miner revenue is often summarized via hash price, expected revenue per unit of hash power, so cash flows depend on BTC price, fees, network difficulty, and power costs.
The halving effect. On April 20, 2024, the block reward fell from 6.25 BTC to 3.125 BTC, instantly cutting new issuance and pushing miners to optimize energy, scale efficiently, or diversify revenue (e.g., curtailment credits, hosting).
Real-world signals.
- Riot has highlighted substantial power and demand-response credits in Texas, showing how power-market strategy can offset revenue shocks.
- Core Scientific restructured and re-listed on Nasdaq in Jan 2024, underscoring both sector cyclicality and scale persistence among top operators.
Why investors like them. Potential operating leverage to BTC upcycles and optionality from fee spikes (e.g., protocol activity increasing transaction fees). But note: when fees dwindle, subsidy dominates miner revenue, tightening margins post-halving.
3) Spot Bitcoin ETFs/ETPs: regulated, custodied exposure
What they are. Funds that hold spot BTC and issue shares designed to track bitcoin’s price (minus fees). The U.S. approved multiple spot bitcoin ETPs on Jan 10, 2024, a watershed for mainstream access.
Plumbing matters. In July 2025, the SEC permitted in-kind creations/redemptions for crypto ETPs, aligning them more closely with traditional ETF mechanics and potentially improving spreads and tax efficiency for large flows.
Why investors like them. Simplicity (no wallets or keys), institutional custody, and exchange liquidity. Trade-offs: expense ratios, potential tracking error, and no operating leverage like miners. Background explainer: how crypto ETFs work and where tracking differences can arise.
Side-by-side: What actually drives returns?
- Treasury companies → Predominantly spot BTC exposure + financing effects (convertible terms, facility draw timing) and dilution math. Accounting now shows fair-value swings in earnings with clearer disclosure tables.
- Miners → Exposure to BTC price, transaction fees, network difficulty, energy price/hedges, and capex scale; the halving structurally reduces issuance, pressuring margins unless offset.
- Spot ETFs/ETPs → BTC price minus fees and structural frictions (creation/redemption mechanics now improved post in-kind approval).
Which one fits which goal?
- “I want clean, custodied price exposure for portfolios.” → Spot ETFs/ETPs. You get regulated fund shares, exchange liquidity, and operational simplicity, ideal for RIAs, mandates, or treasury “dry-powder” policies.
- “I want upside with operating leverage to the network.” → Miners. In bull cycles, expanding margins and fee spikes can juice cash flows; in bear or post-halving periods, high-cost miners struggle.
- “I want direct coin exposure with a compounding per-share story.” → Treasury companies. Evaluate BPS growth, financing efficiency, and disclosure cadence. Matador’s staged facility + frequent treasury updates exemplify this approach.
Bitcoin is forging a financial order governed by mathematics, not politics. Click to learn more.
Due-diligence checklist (clip this)
For treasury companies
- BPS trend (using diluted shares), cost basis, fair-value disclosures under ASU 2023-08, custody and control descriptions.
For miners
- Hash price sensitivity, all-in power cost, fleet efficiency, curtailment/credit strategy, capex plan through halving cycles (and evidence of execution from recent filings).
For ETFs/ETPs
- Expense ratio, creation/redemption mechanism (in-kind vs cash), AUM/flows, primary custodian, historical tracking.
Frequently Asked Questions
Are spot ETFs the same as owning coins?
Economically close, but not identical: you hold fund shares, pay an expense ratio, and rely on the fund’s custody and operations. Benefits include exchange liquidity and institutional safekeeping.
Do miners always outperform BTC in bull markets?
Not always. Outperformance depends on energy costs, scale, fee tailwinds, and balance-sheet health. Poorly hedged or high-cost miners can lag even when BTC rallies.
How do treasury companies avoid “dilution creep”?
By pacing raises/draws and reporting BPS consistently so investors see whether BTC per share is compounding. ASU 2023-08 helps with standardized fair-value tables.
Bottom line
- Spot ETFs/ETPs deliver simple, custodied price exposure.
- Miners add operating leverage, and operational risk, to that exposure.
- Treasury companies give you direct coins + corporate finance, where BPS growth separates disciplined operators from the rest. For a North American pure-play template, note Matador’s facility-backed program and regular holdings updates.