TLDR
- Strategy introduced new Bitcoin metrics tied to debt and preferred stock obligations.
- The company’s Net Reserve now stands at $36.6 billion.
- Strategy holds 843,775 BTC, valued at about $55.6 billion.
- The new mNAV formula sets the accretion threshold at 1.0 times.
- Strategy’s Bitcoin Breakeven ARR currently stands at 3.22%.
Strategy has introduced a new Bitcoin metrics framework that measures shareholder exposure after preferred stock and convertible debt claims.
Strategy Adds Net Reserve Metric
Strategy, formerly known as MicroStrategy, has replaced several gross Bitcoin figures with net measures that account for obligations ahead of common shareholders. The company said the framework gives investors a clearer view of value after debt and preferred stock claims.
The update comes as Strategy continues to manage its Bitcoin-focused capital structure during a deep downturn in Bitcoin and MSTR shares. Bitcoin traded near $65,000, about 50% below its record high, while MSTR has fallen about 84% from its November 2024 peak.
Strategy remains the largest corporate Bitcoin holder, with 843,775 BTC on its balance sheet. The company valued its Bitcoin reserve at about $55.6 billion and also reported $3.2 billion in dollar reserves.
The new Net Reserve metric currently stands at $36.6 billion. Strategy reached that figure after subtracting $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred stock obligations.
Together, those obligations represent $22.3 billion in senior claims. These claims would rank ahead of common shareholders if the company faced a liquidation scenario.
mNAV Formula Shifts to Net Bitcoin Per Share
Strategy also revised its multiple to net asset value, or mNAV, calculation. The new formula compares the MSTR share price with Net Bitcoin Per Share after debt and preferred stock claims.
Under the previous model, the accretion threshold could stay above 1.0 times. That made it harder for investors to judge whether new common share issuance added value for existing holders.
The updated method sets the threshold permanently at 1.0 times. Strategy said issuing common shares above that level increases the amount of net Bitcoin represented by each common share.
This change matters because Strategy has used equity and preferred stock offerings to expand its Bitcoin holdings. A net-based framework gives investors a cleaner way to track whether those transactions increase exposure after senior obligations.
The company’s flagship preferred stock, STRC, traded near $85 and remained below its intended $100 par value since mid-May. That gap has kept investor attention on Strategy’s preferred stock structure and its cost over time.
Bitcoin Breakeven ARR Stands at 3.22%
Strategy introduced another measure called Bitcoin Floor ARR, which tracks the minimum sustained annual Bitcoin growth rate needed before credit restructuring becomes a concern. The company currently places its Bitcoin Breakeven ARR at 3.22%.
That means Bitcoin would need to rise by more than 3.22% per year for gains on Strategy’s holdings to cover interest and preferred dividend obligations over time. The metric links Bitcoin performance directly to the company’s financing structure.
Strategy also added broader Bitcoin market indicators to its new framework. These include Bitcoin’s premium to its 200-week moving average and the Crypto Fear and Greed Index.
The added indicators give investors more context around market conditions while MSTR remains highly tied to Bitcoin’s price direction. The company’s balance sheet depends not only on the amount of Bitcoin held, but also on how debt, preferred stock, and common equity interact.
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