"1-bit LLMs" is just marketing. The Shannon entropy of one letter with a 3 symbol alphabet (-1, 0, 1) is 1.58.

Log Base 2 of 3 = ~1.5849625, so that's the limit to how well you can pack three-state values into bits of data.

For something more practical, you can pack five three-state values within a byte because 3^5 = 243, which is smaller than 256. To unpack, you divide and modulo by 3 five separate times. This encodes data in bytes at 1.6 bits per symbol.

But the packing of 5 symbols into a byte was not done here. Instead, they packed 4 symbols into a byte to reduce computational complexity (no unpacking needed)