Strategy Overhauls Bitcoin Metrics, Debuting 'Net Bitcoin Per Share'

Decrypt Agent Fri, July 24, 2026 at 9:21 AM PDT | 3 min read

• BTC-USD
• MSTR

Strategy has overhauled the metrics it uses to value its Bitcoin, introducing a set of new "net" measures that strip out debt and preferred-stock claims to show how much of its holdings actually belong to common shareholders.

In a 30-minute video posted to its investor site, the company's head of investor relations, Chaitanya Jain, said the metrics had to "evolve" as the business moved "from an era of convertible debt to now a focus on digital credit," and pointed to investor demands for clarity. Executive chairman Michael Saylor put it more grandly, tweeting that, "Bitcoin Capital Markets require a new financial language."

Key New Metrics

• Net Reserve: Approximately $35 billion — calculated by subtracting $22.2 billion in senior claims ($15.5 billion of preferred stock and roughly $6.8 billion of out-of-the-money convertible debt) from Strategy's $57 billion Bitcoin pile (843,775 BTC) and $3.2 billion of cash.
• Net Bitcoin Per Share: The residual divided by a new fully diluted share count. The firm reports this has risen from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats) — a 43% compound annual growth rate, compared to Bitcoin's 16%.
• mNAV: Redefined as MSTR's share price divided by net Bitcoin per share, with the accretion threshold now fixed at 1.0x.
• Amplification: Recast as an equity multiplier — Bitcoin reserve over net reserve — of approximately 1.5x.

New Credit Gauges

The company also introduced new credit metrics to assess the sustainability of its debt-fueled model:

| Metric | Value | Description | |--------|-------|-------------| | Hurdle Rate | ~10.8% | Strategy's effective cost of credit | | Break-Even Rate | ~3.2% | Minimum return needed to cover costs | | Flow Rate | ~−11% | Estimated decline in Bitcoin price before reserves can no longer cover debt and dividends |

Market Context

The overhaul arrives with MSTR under pressure. The stock traded around $93 on Friday, down slightly on the day and far below its 2024 peak, days ahead of second-quarter earnings on July 30.

Under the new formula, its mNAV reads at 1.02x. Measured the old way — against Strategy's gross Bitcoin per share — the stock had appeared to trade at a discount. Dividing instead by net Bitcoin per share, after the roughly $22 billion of senior claims is stripped out, lifts the same share price to parity.

This is Strategy's latest guidance tweak during a bear market that began last October. Its flagship preferred share, STRC, still trades below its $100 "par value."

Background: The 'Digital Credit' Pivot

The firm's "digital credit" framing traces to a late-June pivot, when Strategy approved a framework for "active capital management" that, for the first time, authorized selling up to $1.25 billion of Bitcoin to top up its cash reserve, cover preferred dividends, and fund buybacks — a formal break from Michael Saylor's long-held "never sell" stance.

In the weeks since, the firm has raised cash by selling MSTR stock rather than Bitcoin, sparing its 843,775 BTC stack while diluting common holders.

Outlook

For now, Strategy's own math suggests the structure holds — as long as Bitcoin, currently around $64,000 and approximately 50% below its high, does not fall more than roughly 11% per year through the early 2030s.