The first metric is the new “Net Reserve”, which currently stands at $36.6 billion. That figure takes Strategy’s $55.6 billion BTC reserve (843,775 BTC), adds $3.2 billion in US dollar reserves, then subtracts $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred stock, the $22.3 billion in senior claims that sit ahead of common shareholders in any liquidation scenario.
The company has also updated its multiple to net asset value (mNAV) formula. Under the old accounting method, the accrual threshold would typically keep the company’s mNAV above 1.0x, making it increasingly difficult to know whether the new issuance of shares was actually beneficial to existing holders. The new formula permanently sets that threshold at 1.0x: if MSTR trades above it, the issuance of new shares adds BTC per share for all investors.
According to the company, the formula is: MSTR Price, divided by net Bitcoin per share, which represents whether MSTR trades above or below net Bitcoin per share after debt and preferred claims.
The BTC Floor ARR is the minimum sustained rate of BTC growth over the duration of the credit structure before restructuring becomes a consideration for the company. Currently, BTC’s breakeven ARR sits at 3.22%, meaning Bitcoin only needs to appreciate faster than that rate annually for Strategy to fund all interest and dividend obligations through BTC earnings alone, in perpetuity.
The strategy has also introduced new bitcoin market metrics such as the 200-week moving average premium and the fear and greed index.
