Strategy Unveils New Metrics to Gauge Bitcoin Impact on Company Value

Michael Saylor announced on X that Strategy has revamped its metrics to measure Bitcoin's impact on the company's value, introducing Net $BTC Per Share (Net BPS) and BTC Hurdle ARR.

The new framework aims to provide a more accurate picture of the Bitcoin value attributable to common shareholders as Strategy's capital structure has grown more complex. The centerpiece is Net BPS, which shows the bitcoin value after subtracting net debt and preferred equity claims, similar to book value per share but denominated in bitcoin.

The old mNAV benchmark is being retired in favor of comparing share price directly against Net BPS, while keeping 1.0x as the line investors watch for dilution risk. $BTC Hurdle ARR represents the company's effective funding cost, which is the annualized bitcoin return needed to clear a positive spread over what Strategy pays to service its debt and preferred obligations.

The new metrics build on ground Strategy has been laying for months, including its 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.