Strategy Inc.'s Bitcoin-Backed Stock Surges 42% Annualized

Strategy Inc., the software company behind the 'bitcoin standard' theory, claims its stock has returned an annualized 42% since adopting Bitcoin as its primary treasury reserve asset in August 2020. This outperforms not only Bitcoin itself but also the Magnificent Seven and the S&P 500 over the same period.

The company's 843,775 BTC treasury was bought for $63.69 billion at an average price of $75,476 per coin, leaving it with an estimated $11.4 billion paper loss or about 17.9% below its cost basis.

Strategy Executive Chairman Michael Saylor introduced new metrics on July 24 to reframe the company's bitcoin-based treasury strategy, including Net BTC Per Share, BTC Hurdle ARR and BTC Floor ARR. These metrics aim to show investors what the company's bitcoin holdings are actually worth once debt and preferred-stock obligations are subtracted out.