Strategy Changes Bitcoin Metrics, Relaunches ‘Net Bitcoin Per Share’

Strategy has also changed the metrics it uses to set its Bitcoin value, rolling out new “net” methods that strip out debt and preferred claims to show how much of its stash is owned by common owners.

In a 30-minute video sent to his place investorThe firm’s director of investor relations Chaitanya Jain said the metrics had to “change” as the industry moved “from the era of flexible credit to now focusing on digital credit,” and pointed to business demands for clarity. Executive Chairman Michael Saylor made it clear, tweeting that, “Bitcoin Capital Markets require a new currency language.”

The middle is the “net reserve,” roughly $35 billion-which is left after subtracting $22.2 billion in capital assets ($15.5 billion in preferred stock and about $6.8 billion in convertible debt) from Strategy’s $57 billion Bitcoin pile (843,775 BTC) and $3.2 billion in cash. Dividing the remainder by the new reduced number of shares gives “net Bitcoin per share,” which the company said has risen from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats) – 43% compound annual growth, against 16% for Bitcoin.

The company also defined mNAV as the price of MSTR’s share divided by the net Bitcoin per share, and reached a fixed increase at 1.0x, and added “magnification” as a multiple of bitcoin – Bitcoin reserve per reserve – about 1.5x. The new credit rating establishes the stability of the credit-driven model, with a “cover” of about 10.8% marking the cost of the Strategy’s debt, a drop-even price of about 3.2%, and a “run” of about -11% that estimates how much Bitcoin can fall before the money can cover the debt and profits.

Controls arrive with MSTR under strain: load to sell about $ 93 on Friday, slightly lower on the day and below its peak of 2024, days ahead of the payment of the second quarter on July 30. Under the new plan, its mNAV is calculated at 1.02x. Testing the old strategy—against the Strategy’s total revenue per share—the asset looked to sell at a lower price; replacing it with a net Bitcoin per share, after $22 billion has been withdrawn, raises the value of that share. That’s the latest Strategy advice in the bear market that started last October; its best part, STRC, is still ad below its value of $100 “on the tree”.

The company’s “digital loan” starts at the end of June, while Strategy accepted the frame for “capital management” where, for the first time, he allowed the sale of up to $ 1.25 billion of Bitcoin to increase his capital, cover his preferred shares, and return money – a welcome break from the idea that Michael Saylor has been practicing for a long time “do not sell”. In the past few months, the company said he made money by selling MSTR stock not Bitcoin, its storage 843,775 BTC stack while diluting ordinary residents.

Meanwhile, Strategy math that says the design works – as long as Bitcoincurrently at about $64,000 and about 50% below its peak, it will not decline beyond about 11% per year until the early 2030s.