Strategy has introduced a new set of Bitcoin market metrics that account for the company’s preferred stock and convertible debt obligations, replacing several gross figures with net equivalents.
The company said the revised framework is intended to provide a clearer view of the value available to common shareholders after claims that rank ahead of them.
The changes come as Strategy continues to refine its financial guidance during a prolonged downturn in Bitcoin and MSTR shares. Its flagship preferred stock, STRC, trades near $85 and has remained below its intended $100 par value since mid May.
Bitcoin is trading near $65,000, roughly 50% below its record high, while MSTR is down about 84% from its November 2024 peak.
Strategy introduces $36.6 billion Net Reserve
The first new metric, called Net Reserve, currently stands at $36.6 billion.
The figure includes Strategy’s $55.6 billion Bitcoin reserve, made up of 843,775 BTC, and $3.2 billion in dollar reserves.
Strategy then subtracts $6.8 billion in convertible debt that is currently out of the money and $15.5 billion in notional preferred stock obligations.
Together, those liabilities represent $22.3 billion in senior claims that would rank ahead of common shareholders in a liquidation scenario.
Revised mNAV formula sets threshold at 1.0 times
Strategy also updated its multiple to net asset value formula.
Under the previous framework, the accretion threshold could remain above 1.0 times, making it more difficult to determine whether issuing new common shares was beneficial to existing holders.
The revised formula permanently sets the threshold at 1.0 times. Strategy said issuing shares while MSTR trades above that level increases the amount of net Bitcoin represented by each common share.
The company calculates the metric by dividing the MSTR share price by Net Bitcoin Per Share after accounting for debt and preferred stock claims.
Bitcoin breakeven rate stands at 3.22%
Strategy also introduced a Bitcoin Floor ARR metric, which represents the minimum sustained annual Bitcoin growth rate required before the company would need to consider restructuring its credit obligations.
The company currently places its Bitcoin Breakeven ARR at 3.22%.
That means Bitcoin would need to appreciate by more than 3.22% annually for gains on Strategy’s holdings to cover its interest and preferred dividend obligations over time.
Strategy also added broader Bitcoin market indicators to its framework, including Bitcoin’s premium to its 200 week moving average and the Crypto Fear and Greed Index.