MicroStrategy Reveals True Bitcoin Holdings After Lender Payments
MicroStrategy has overhauled its MSTR metrics to provide a clearer picture of its massive Bitcoin holdings. The company, formerly known as Strategy, now reports on how much Bitcoin is truly owned by common shareholders after lenders and preferred investors are paid first.
The change reveals that roughly $36 billion in Bitcoin is left for common shareholders out of the total stash of 843,775 units valued at around $58 billion. Lenders and preferred investors are owed about $22 billion, with servicing costs amounting to approximately $1.8 billion per year.
MicroStrategy's founder and executive chairman, Michael Saylor, stated that 'Bitcoin Capital Markets require a new financial language.' The firm still buys Bitcoin using borrowed money, but the new metrics show how shareholders are exposed to losses when the price falls.