Strategy Unveils Net Bitcoin Per Share Metric for Common Shareholders

Strategy Inc., a company known for its complex capital structure, has introduced a new metric called Net Bitcoin Per Share (Net BPS) to provide a clearer picture of shareholder value. This calculation takes into account the senior claims against Strategy's gross Bitcoin holdings and divides the remaining amount by the fully diluted share count.

The result can be expressed in satoshis or US dollars, giving common shareholders a single number that represents their residual claim on the firm's Bitcoin treasury. As of July 24, Strategy's Net BPS metric stands at $36.6 billion, which is about two-thirds of its total BTC holdings.

The company has also revised its multiple-to-net-asset-value (mNAV) formula to permanently set the equity-issuance threshold at 1.0x. This means that Strategy will only issue new shares when doing so would be accretive, increasing Net BPS for existing holders rather than diluting it.

The company's shift toward a 'Digital Credit' capital framework, first outlined on June 29, is aimed at treating Bitcoin holdings as collateral for an increasingly layered capital structure. By introducing the Net BPS metric and revising its mNAV formula, Strategy aims to provide investors with a more accurate representation of their share value.