Strategy Rethinks Bitcoin Metrics, Unveils 'Net Bitcoin Per Share' Yardstick
Strategy, a company known for its focus on Bitcoin and digital credit, has overhauled its metrics to better reflect the value of its holdings. The changes come as the firm shifts from convertible debt to preferred equity, requiring new yardsticks to measure its performance.
The centerpiece of the overhaul is 'net Bitcoin per share,' which measures the amount of Bitcoin left for common shareholders after subtracting $22.3 billion in senior claims and preferred stock. This figure has risen from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats), a 43% compound annual growth rate.
Strategy's executive chairman Michael Saylor said that Bitcoin Capital Markets require a new financial language. The firm also redefined its 'mNAV' metric and recast 'amplification' as an equity multiplier of about 1.5x. New credit gauges frame the debt-fueled model's sustainability, with a 'hurdle rate' of around 10.8% marking Strategy's effective cost of credit.
The overhaul arrives with MSTR under pressure, trading at around $93 on Friday and far below its 2024 peak. The new formula lifts the stock to parity when measured against net Bitcoin per share.