Strategy's MSTR Stock Surges 42% Since Adopting Bitcoin Reserve
Strategy Inc., listed on NASDAQ as MSTR, has seen its stock return 42% since it adopted Bitcoin as its primary reserve asset in August 2020. According to Michael Saylor, the company's Executive Chairman, this outperforms not only Bitcoin itself but also the 'Magnificent Seven' tech stocks and the S&P 500 index.
Strategy currently holds 843,775 BTC ($64,591.00 · Live), with a total purchase cost of approximately $636.9 billion at an average price of around $75,476 per coin. However, this results in a floating loss of about $114 billion (17.9% of the value) compared to the original cost.
To address the increasingly complex capital structure, Strategy introduced three new metrics on July 24: Net BTC Per Share, BTC Hurdle ARR (covering financing costs' required minimum yield rate), and BTC Floor ARR (required minimum yield rate for sustaining leverage ratio). These aim to help investors better evaluate the actual value of its Bitcoin holdings.
Going forward, the company plans to sell some of its Bitcoin to raise funds in support of preferred stock buybacks.