Strategy has overhauled how it values its Bitcoin, debuting a "net Bitcoin per share" metric that subtracts debt and preferred-stock claims to reveal what common shareholders actually own. Stripping $22.2 billion in senior claims from a $57 billion Bitcoin pile leaves a "net reserve" of about $35 billion. The redesign lands days before quarterly earnings, with MSTR trading far below its 2024 peak.
Strategy has rebuilt the yardsticks it uses to value its Bitcoin, rolling out "net" measures that strip out debt and preferred-stock claims to show how much of the stash belongs to shareholders. The centerpiece, "net Bitcoin per share," reports what is left after $22.2 billion in senior claims—$15.5 billion of preferred stock and roughly $6.8 billion of out-of-the-money convertible debt.
Head of investor relations Chaitanya Jain said the metrics had to evolve as the business moved from convertible debt toward digital credit. Executive chairman Michael Saylor put it more grandly, casting the overhaul as a new vocabulary for the sector: "Bitcoin Capital Markets require a new financial language."
The net reserve, by the numbers
That residual anchors a new "net reserve" of about $35 billion, the remainder after the senior claims come out of a $57 billion Bitcoin pile of 843,775 BTC and $3.2 billion in cash. Dividing it by a fully diluted share count—a figure the firm reports in dollars and satoshis—yields net Bitcoin per share. Strategy says that number has risen from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats), a 43% compound annual growth rate against Bitcoin’s 16%.
New guardrails and credit gauges
Alongside the metric, Strategy redefined mNAV as its share price divided by net Bitcoin per share, fixing the accretion threshold at 1.0x. It recast "amplification" as an equity multiplier—Bitcoin reserve over net reserve—of about 1.5x. New credit gauges test the debt-fueled model: a "hurdle rate" near 10.8% for its cost of credit, a break-even rate near 3.2%, and a "flow rate" of about −11% marking how far Bitcoin could fall before reserves stopped covering debt and dividends.
A stock under pressure
MSTR is under strain: the stock traded around $93 on Friday, days ahead of Q2 earnings on July 30. It sits about 84% below its November 2024 peak. Under the new formula its mNAV reads right at 1.02x—parity, where the old gross measure had shown a discount.
Strategy’s guidance has kept shifting through a bear market that began last October, and its flagship preferred share, STRC, still trades below its $100 par value. The framing traces to a late-June pivot, when the firm approved selling up to $1.25 billion of Bitcoin to top up cash, cover preferred dividends, and fund buybacks—breaking Saylor’s long-held never-sell stance. Since then it has raised cash by selling MSTR stock rather than Bitcoin, sparing the coin stack while diluting common holders.
By Strategy’s own math, the structure holds only as long as Bitcoin—near $64,000 and about 50% below its high—doesn’t fall more than roughly 11% a year through the early 2030s.
Sources: Decrypt, Crypto Briefing
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