MicroStrategy Reveals True Cost of Bitcoin Stash
MicroStrategy has revamped its reporting metrics to give common shareholders a more accurate picture of their stake in Bitcoin. The company, which holds approximately 843,775 BTC, valued at around $58 billion on paper, now shows how much of that stash is actually owed to lenders and preferred investors first.
The new 'net reserve' figure reveals that about $22 billion in debt must be paid out before common shareholders can claim their share. This leaves around $36 billion in Bitcoin for them, a significant reduction from the previous total.
MicroStrategy's Digital Credit framework, introduced this year, outlines how the company takes on debt to buy more Bitcoin. The firm pays an estimated $1.8 billion annually in interest and dividends, which is also reflected in the new metrics.
The amplification ratio has increased to 1.53x, indicating that shareholders' gains are directly tied to Bitcoin's performance, with a corresponding increase in risk.