Strategy Unveils New Metrics for $64 Billion Bitcoin Bet
Michael Saylor and Strategy have released new metrics to measure their $64 billion Bitcoin bet. The overhaul aims to provide a more accurate picture of the Bitcoin value attributable to common shareholders, as the company's capital structure has grown more complex.
The centerpiece is Net BTC Per Share (Net BPS), which shows the bitcoin value attributable to common shareholders after subtracting net debt and preferred equity claims. Strategy is also retiring its old mNAV benchmark in favor of comparing share price directly against Net BPS, while keeping 1.0x as the line investors watch for dilution risk.
The new metrics include $BTC Hurdle ARR, which represents the company's effective funding cost and the annualized bitcoin return needed to clear a positive spread over what Strategy pays to service its debt and preferred obligations. Another metric is $BTC Floor ARR, which sets a lower bar: the minimum annualized bitcoin return required just to maintain a 1.0x BTC Rating under the company's current capital structure.
The new framework has been months in the making, building on the company's earlier $BTC Breakeven ARR figure, under which Saylor said bitcoin needed just 3.3% annual growth for Strategy to keep funding its STRC preferred dividends indefinitely.