One of the most compelling aspects of the Bitcoin treasury company sector is what happens when these companies go public: the market assigns them a premium multiple to their underlying Bitcoin holdings. Strategy trades at a meaningful premium to its Bitcoin NAV. Metaplanet’s stock rose 190% in a year on the strength of its Bitcoin accumulation story.
BARS Fund’s long-term plan is to capture that same public market premium — as the only publicly traded company that combines a music royalty business with a Bitcoin treasury. Nobody has done this. The SPAC pathway is how we get there.
Why Public Markets Value Bitcoin Treasury Companies Differently
Understanding why Strategy trades at a premium to NAV requires understanding what institutional equity investors are actually buying:
- Leveraged Bitcoin exposure without the tax complexity of holding BTC directly
- Institutional-grade custody and governance that pension funds and endowments can point to
- Ongoing accumulation — a management team committed to growing BTC holdings per share
- Liquidity — you can sell the stock in minutes; selling physical Bitcoin through institutional channels is slower and more complex
The “NAV premium” isn’t irrational. It reflects the value of the structure itself — the access, governance, and ongoing accumulation story that the management team provides.
The BARS Fund Public Company Value Proposition
When BARS Fund goes public, we offer something no existing public Bitcoin treasury company has:
A Bitcoin treasury that generates its own income.
Every other public Bitcoin treasury company requires external capital (bond issuances, equity dilution) to maintain and grow its holdings. BARS Fund’s music royalty income services the debt that funds Bitcoin purchases — making the treasury structurally self-sustaining at scale.
For public market investors, this matters enormously:
- No dilution risk: We’re not constantly issuing shares to fund Bitcoin purchases
- No credit market dependency: Our royalty income covers debt service regardless of bond market conditions
- Real asset backing: Music IP provides a tangible, income-generating collateral base that pure Bitcoin treasury companies lack
- Dual business narrative: We’re the intersection of two of the hottest institutional investment themes of this decade — music IP and Bitcoin treasury
The SPAC Structure Mechanics
A SPAC (Special Purpose Acquisition Company) merger allows BARS Fund to access public markets on an accelerated timeline, with more control over timing and valuation than a traditional IPO.
The process:
- SPAC identification: Partner with a SPAC sponsor focused on alternative assets, digital assets, or music/media
- Business combination: BARS Fund merges with the SPAC, receiving the cash in the SPAC trust in exchange for equity
- Public listing: BARS Fund becomes a publicly traded company, typically on NASDAQ or NYSE
- Ongoing capital markets access: As a public company, we can issue equity and debt at institutional scale to accelerate Bitcoin accumulation
The SPAC pathway has been used successfully by multiple digital asset and alternative asset companies. The key is having a differentiated enough story to attract SPAC sponsors and their investors — and there is nothing in the existing SPAC pipeline that looks like BARS Fund.
The Valuation Case at Exit
Using BARS Fund’s Option 2 pro forma (full acquisition structure):
- 5-year projected company valuation: $685M
- Methodology: 1.5x (Cash/Bitcoin value of $256.7M) + $300M catalog value
- Comparable public market multiples: Strategy trades at 1.5–2.5x Bitcoin NAV; music catalog companies trade at 1.5–2x royalty asset value
A public BARS Fund would be valued on both:
- Its Bitcoin treasury (likely at a premium multiple similar to pure BTC treasury companies)
- Its music catalog (likely at a standard royalty multiple)
The combination is additive, not averaged — because the music catalog business is what makes the Bitcoin treasury self-financing, the combined entity deserves a premium to either component valued independently.
This is the core of the investment thesis for Option 2 investors: they’re not just buying a music fund or a Bitcoin fund. They’re buying the first entity that bridges both, with a credible public market exit at a premium multiple.
The window to be an early investor in BARS Fund — before the public markets assign that premium — is the current raise.
Erik Mendelson is the founder and CEO of BARS Fund. Contact erik@recordgram.com to request the investor package.