Bitcoin Fund (QBTC.U.TO) WACC Analysis

As of May 22, 2025, Bitcoin Fund (QBTC.U.TO) carries a Weighted Average Cost of Capital (WACC) of 6.5%. WACC reflects the blended rate Bitcoin Fund must pay to both equity and debt holders.

Within that, the cost of equity is 8.2%, the cost of debt is 5.0%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.1 – 1.14
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 6.5%, Bitcoin Fund must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.