Strategy Overhauls Bitcoin Metrics to Reflect Senior Claims as Bear Market Persists

Strategy (MSTR), the largest corporate holder of bitcoin, has introduced a new market metrics framework that replaces gross BTC-based figures with net equivalents accounting for the company's growing preferred stock and convertible debt obligations. The revised approach is designed to provide common equity holders with a more transparent view of Strategy's financial position.

The overhaul is the latest in a series of refinements Strategy has made to its guidance over the past year as it navigates a bear market that began in October. The company's flagship preferred stock, STRC, currently trades near $85 and has not returned to its intended $100 par value since mid-May. Bitcoin is trading at approximately $65,000 — 50% below its all-time high — while MSTR sits 84% below its November 2024 peak.

Net Reserve: A Clearer Picture for Common Shareholders

The centerpiece of the new framework is the "Net Reserve" metric, which currently stands at $36.6 billion. This figure is derived by taking Strategy's $55.6 billion BTC reserve (843,775 BTC), adding $3.2 billion in USD reserves, then subtracting $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred stock — totaling $22.3 billion in senior claims that rank ahead of common shareholders in any liquidation scenario.

That distinction matters because gross bitcoin holdings do not show how much value remains attributable to common equity after obligations with higher priority are considered. By moving from gross BTC figures to net equivalents, Strategy is separating the size of its bitcoin treasury from the portion economically available to common shareholders after debt and preferred stock claims.

Revised mNAV Formula

Strategy has also updated its multiple to net asset value (mNAV) formula. Under the previous accounting method, the accretion threshold typically kept the company's mNAV above 1.0x, making it increasingly difficult to determine whether new share issuance genuinely benefited existing holders.

The new formula permanently anchors the equity issuance threshold at 1.0x. According to the company, the formula is calculated as MSTR Price divided by Net Bitcoin Per Share, indicating whether MSTR trades above or below Net Bitcoin Per Share after accounting for debt and preferred claims. If MSTR trades above 1.0x mNAV, issuing new shares adds BTC per share for all investors.

Strategy outlined the new framework in a post on X.

BTC Breakeven ARR and Floor Metrics

The company introduced the BTC Floor ARR, defined as the minimum sustained BTC growth rate over the credit structure's duration before restructuring becomes a consideration. The current BTC Breakeven ARR sits at 3.22%, meaning bitcoin would only need to appreciate at a rate exceeding that figure annually for Strategy to fund all interest and preferred dividend obligations through BTC gains alone, in perpetuity.

The metric adds a credit-structure lens to Strategy's bitcoin-focused disclosures by tying ongoing obligations to a stated bitcoin appreciation rate. Alongside Net Reserve and the revised mNAV calculation, it gives investors a clearer way to compare the company's bitcoin holdings with the claims and funding costs attached to its capital structure.

Strategy has also added supplementary bitcoin market indicators to its framework, including the premium to the 200-week moving average and the Fear and Greed Index.