Strategy overhauls bitcoin metrics to account for senior claims

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The first metric is the new “Net Reserve”, which currently sits at $36.6 billion. That figure takes Strategy’s $55.6 billion BTC reserve (843,775 BTC), adds $3.2 billion in USD reserves, then subtracts $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred, the $22.3 billion in senior claims that rank ahead of common shareholders in any liquidation scenario.

The company has also updated its multiple to net asset value (mNAV) formula. Under the old accounting method, the accretion threshold would usually keep the company’s mNAV above 1.0x, making it increasingly difficult to know whether new share issuance was actually beneficial for existing holders. The new formula anchors that threshold permanently at 1.0x — if MSTR trades above it, issuing new shares adds BTC per share for all investors.

According to the company, the formula is: MSTR Price, divided by Net Bitcoin Per Share, representing whether MSTR trades above or below Net Bitcoin Per Share after debt and preferred claims.

The BTC Floor ARR is the minimum sustained BTC growth rate over the credit structure’s duration before restructuring becomes a consideration for the company. Currently, the BTC Breakeven ARR sits at 3.22%, meaning bitcoin only needs to appreciate faster than that rate annually for Strategy to fund all interest and dividend obligations through BTC gains alone, in perpetuity.

Strategy has also introduced new bitcoin market metrics, such as the premium to the 200-week moving average and the Fear and Greed Index.

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