Strategy Introduces New Bitcoin Valuation Metrics
Strategy has introduced new financial metrics to better reflect how much of its Bitcoin holdings belong directly to common shareholders, moving away from older measures that included debt and preferred stock. The company now calculates a 'net reserve' by subtracting $22.2 billion in senior claims—such as preferred stock and convertible debt—from its total assets, which include 843,775 BTC valued at around $57 billion plus cash reserves. The new metric, called 'net Bitcoin per share,' has grown from $13 (44,000 sats) in late 2020 to $95 today. This growth rate of 43% annually outpaces Bitcoin's overall performance by nearly three times. The company also redefined its mNAV and introduced new credit metrics that assess the sustainability of its debt-fueled model. The changes come as Strategy faces pressure from investors, with its stock trading below recent highs ahead of second-quarter earnings on July 30. Under the updated formula, MSTR's share price is now at parity rather than a discount compared to net Bitcoin per share.
Tickers: $MSTR
Topics: Bitcoin capital structure MSTR net Bitcoin per share