The Runway-First Framework: How Much Can You Actually Allocate?
Last week I introduced the idea of a Bitcoin treasury and why more companies are considering it.
This week, I’m taking the first practical step in my own company: figuring out how much I can actually allocate without risking operations.
Runway First, Allocation Second
In treasury, survival comes before strategy.
So here’s my approach:
- I calculated my company’s theoretical monthly burn (Stress-test what burn would be if revenue dropped to 0).
- I multiplied it by 12 months, which is my minimum fiat Defensive Runway.
- Only what’s left above that number is eligible surplus for Bitcoin allocation.
This way, even if BTC drops 50%, I’m not putting core operations at risk.
My Company’s Numbers (Pilot Step 1)
Here’s what it looks like in my own business:
- Current cash reserve = 100%
- Theoretical monthly burn [y]: = 6.2%
- 12-month runway [x]: [x = y × 12] = 74.35%
- Surplus: [Reserve – Runway] = 25.65%
For example (Random for illustration):
- Reserves: € 100,000
- Burn: € 6,195.97 / month
- Runway buffer: € 74,351.63
- Surplus: € 25,648.37
This means my maximum theoretical allocation is € 25,648.37.
But I’ll apply a conservative band (say 2-5%), so the actual BTC purchase will be lower.
The Safe Zone
What I’m not doing here:
- I’m not telling you “buy X BTC today.”
- I’m not touching client funds.
I’m applying frameworks to my own company and documenting the process. That keeps this in the safe zone (education + pilot transparency), not regulated advice.
What I Built This Week
To make this repeatable, I created a Runway & Surplus Allocation Calculator.
- Inputs: reserves, burn, obligations.
- Outputs: fiat runway, surplus, and example allocation bands.
This is the tool I’ll keep using as I move forward and it’s something other CFOs could adapt for their own companies.
Next Week
I’ll tackle governance: how you can set up approvals, segregation of duties, and some reasons why you should not hold signing authority alone.
This is Part 2 of the Bitcoin Treasury Series.