Strategy Introduces 'Net Bitcoin Per Share' Metrics

Strategy has revamped its Bitcoin valuation metrics, introducing new 'net' measures that exclude debt and preferred-stock claims to clarify the actual Bitcoin ownership of common shareholders. The company's head of investor relations, Chaitanya Jain, emphasized the need for these metrics to evolve as the business shifts focus from convertible debt to digital credit, responding to investor demands for transparency. The key metric, 'net reserve,' stands at approximately 35000000000 dollars after deducting 22200000000 dollars in senior claims from Strategy's 57000000000 dollars Bitcoin holdings (843775 BTC) and 3200000000 dollars in cash. This results in a 'net Bitcoin per share' that has increased from 13 dollars (44000 sats) at the end of 2020 to 95 dollars (143000 sats), reflecting a 43% compound annual growth rate compared to Bitcoin's 16%. The company has also redefined mNAV as MSTR's share price divided by net Bitcoin per share, with a new accretion threshold set at 1.0x. Strategy's stock, trading around 93 dollars, is under pressure ahead of its second-quarter earnings on July 30. The new formula indicates that the stock is at parity when accounting for senior claims. Additionally, Strategy's recent pivot allows for the sale of up to 1250000000 dollars of Bitcoin to manage cash reserves, marking a departure from its previous 'never sell' policy. Current estimates suggest that Bitcoin must not fall more than approximately 11% annually through the early 2030s for the structure to remain viable.