Liquidation Preference Definition

Liquidation Preference is a balance sheet metric used in Bitcoin treasury analysis.The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).

What is Liquidation Preference?

The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).

Liquidation Preference Definition

The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).

Liquidation Preference Meaning

The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).

How to calculate Liquidation Preference

Terms are specified by the issuer in the prospectus/certificate of designation (including whether dividends are cumulative, priority ranking vs other series, and what events trigger liquidation treatment).

Why does Liquidation Preference matter?

Liquidation preference is a core downside-protection feature of preferred equity. It defines seniority and helps investors compare risk across series (and vs. common stock) when collateral coverage deteriorates.

What does Liquidation Preference mean?

The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).

Liquidation Preference explained

The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).

Liquidation Preference formula

Terms are specified by the issuer in the prospectus/certificate of designation (including whether dividends are cumulative, priority ranking vs other series, and what events trigger liquidation treatment).

Liquidation Preference balance sheet

The amount preferred shareholders are entitled to receive (per share) before common shareholders in a liquidation, dissolution, or similar event—often tied to par value plus any defined accruals (such as unpaid dividends, if applicable).