BTCS WACC - Weighted Average Cost of Capital
The WACC of BTCS Inc (BTCS) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.6% | 7.9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.5 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BTCS | BTCS Inc | 0.97 | -0.58 | -0.34 |
| BRPA | Big Rock Partners Acquisition Corp | 0.04 | 0.12 | 0.12 |
| EVY | Eaton Vance New York Municipal Income Trust | 0.53 | 0.15 | 0.11 |
| GRCY | Greencity Acquisition Corp | 0.13 | 0.03 | 0.03 |
| LNK.CN | Link Global Technologies Inc | 0.61 | 0.96 | 0.66 |
| MZA | Blackrock Muniyield Arizona Fund Inc | 0.6 | 0.24 | 0.17 |
| NTWN | Newtown Lane Marketing Inc | 0 | 1.07 | 1.07 |
| PAID.CN | XTM Inc | 1.49 | -0.18 | -0.09 |
| SGNI | StemGen Inc | 0.31 | 1.01 | 0.82 |
| VCF | Delaware Investments Colorado Municipal Income Fund Inc | 0 | 0.31 | 0.31 |
| VST.CN | Victory Square Technologies Inc | 0.36 | 0.92 | 0.73 |
| Low | High | |
| Unlevered beta | 0.12 | 0.31 |
| Relevered beta | 0.25 | 0.78 |
| Adjusted relevered beta | 0.5 | 0.85 |
BTCS's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for BTCS:
cost_of_equity (7.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.5) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.