Strategy Overhauls Bitcoin Metrics, Debuting 'Net Bitcoin Per Share'
Strategy has revised its Bitcoin valuation framework to emphasize what belongs to common shareholders after subtracting senior claims. It introduced “net reserve,” which deducts preferred stock and convertible debt from its Bitcoin and cash holdings, and “net Bitcoin per share,” based on a fully diluted share count. Under this approach, net Bitcoin per share has risen sharply since 2020, and Strategy says its growth has outpaced Bitcoin’s. The company also redefined mNAV as share price divided by net Bitcoin per share, putting MSTR near 1.0x. New credit metrics include an effective hurdle rate, break-even rate, and a “flow rate” intended to show how much Bitcoin can fall before reserves no longer cover debt and dividends. The change comes as MSTR trades well below recent highs and ahead of earnings. It also reflects Strategy’s shift toward “digital credit” and active capital management, including permission to sell some Bitcoin if needed, though recent funding has come mainly from stock sales rather than BTC sales.
