Strategy Overhauls Bitcoin Metrics, Debuting 'Net Bitcoin Per Share'

Strategy has overhauled the metrics it uses to value its Bitcoin, rolling out a set of new “net” measures that strip out debt and preferred-stock claims to show how much of its stash actually belongs to common shareholders.

In a 30-minute video posted to its investor site, the company’s head of investor relations Chaitanya Jain said the metrics had to “evolve” as the business moved “from an era of convertible debt to now a focus on digital credit,” and pointed to investor demands for clarity. Executive chairman Michael Saylor put it more grandly, tweeting that, “Bitcoin Capital Markets require a new financial language.”

The centerpiece is “net reserve,” about $35 billion—what is left after subtracting $22.2 billion in senior claims ($15.5 billion of preferred stock and roughly $6.8 billion of out-of-the-money convertible debt) from Strategy’s $57 billion Bitcoin pile (843,775 BTC) and $3.2 billion of cash. Dividing that residual by a new fully diluted share count gives “net Bitcoin per share,” which the firm says has risen from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats)—a 43% compound annual growth rate, against Bitcoin’s 16%.

The company also redefined mNAV as MSTR’s share price divided by net Bitcoin per share, with the accretion threshold now fixed at 1.0x, and recast “amplification” as an equity multiplier—Bitcoin reserve over net reserve—of about 1.5x. New credit gauges frame the debt-fueled model’s sustainability, with a “hurdle rate” of about 10.8% marking Strategy’s effective cost of credit, a break-even rate near 3.2%, and a “flow rate” of about −11% that estimates how far Bitcoin could fall before reserves stopped covering debt and dividends.

The overhaul arrives with MSTR under pressure: the stock traded around $93 on Friday, down slightly on the day and far below its 2024 peak, days ahead of second-quarter earnings on July 30. Under the new formula, its mNAV reads right at 1.02x. Measured the old way—against Strategy’s gross Bitcoin per share—the stock had looked to trade at a discount; dividing instead by net Bitcoin per share, after the roughly $22 billion of senior claims is stripped out, lifts the same share price to parity. It is Strategy’s latest guidance tweak during a bear market that began last October; its flagship preferred share, STRC, still trades below its $100 “par value.”

The firm’s “digital credit” framing traces to a late-June pivot, when Strategy approved a framework for “active capital management” that, for the first time, authorized selling up to $1.25 billion of Bitcoin to top up its cash reserve, cover preferred dividends, and fund buybacks—a formal break from Michael Saylor’s long-held “never sell” stance. In the weeks since, the firm has raised cash by selling MSTR stock rather than Bitcoin, sparing its 843,775 BTC stack while diluting common holders.

For now, Strategy’s own math says the structure holds—as long as Bitcoin, currently around $64,000 and about 50% below its high, doesn’t fall more than roughly 11% a year through the early 2030s.