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

The company says the shift reflects its ongoing transition from convertible debt toward preferred-equity "digital credit," which it argues requires fresh valuation yardsticks. The distinction matters because preferred shares and debt sit ahead of common equity in the capital structure, so gross Bitcoin holdings alone do not show the residual exposure available to MSTR common shareholders.

New and updated market metrics are live at As Digital Credit becomes a larger portion of our balance sheet, we've sharpened our precision based on investor feedback. This video walks through what's new and why. 00:00 - Intro to Strategy's new and updated… pic.twitter.com/ndCoDc9PDW

— Strategy (@Strategy) July 23, 2026

In a 30-minute video posted to its investor site, 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," citing investor demands for greater clarity. Executive Chairman Michael Saylor echoed the sentiment on social media, stating that "Bitcoin Capital Markets require a new financial language."

Net Reserve and Net Bitcoin Per Share

The centerpiece metric is "net reserve," which stands at approximately $35 billion. This figure represents what remains after subtracting $22.2 billion in senior claims — comprising $15.5 billion of preferred stock and roughly $6.8 billion of out-of-the-money convertible debt — from Strategy's $57 billion Bitcoin holdings (843,775 BTC) and $3.2 billion in cash.

Dividing that residual by a new fully diluted share count yields "net Bitcoin per share." According to the company, this metric has grown from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats) — a 43% compound annual growth rate, compared with Bitcoin's 16% over the same period.

Redefined mNAV and New Credit Gauges

Strategy also redefined mNAV as MSTR's share price divided by net Bitcoin per share, with the accretion threshold now fixed at 1.0x. The company recast "amplification" as an equity multiplier — Bitcoin reserve over net reserve — of approximately 1.5x. By anchoring mNAV to net rather than gross Bitcoin per share, the new measure makes senior claims part of the valuation framework instead of treating the Bitcoin reserve as if it were fully attributable to common equity.

New credit gauges are designed to frame the sustainability of Strategy's debt-fueled model. A "hurdle rate" of roughly 10.8% marks the firm's effective cost of credit, a break-even rate sits near 3.2%, and a "flow rate" of approximately −11% estimates how far Bitcoin could decline before reserves stopped covering debt and dividend obligations.

Stock Under Pressure Ahead of Earnings

The metrics overhaul arrives at a challenging moment for MSTR. The stock traded around $93 on Friday, down slightly on the day and well below its 2024 peak, just days before second-quarter earnings scheduled for July 30. Under the new formula, the stock's mNAV reads at 1.02x. Measured the old way — against Strategy's gross Bitcoin per share — the stock appeared to trade at a discount; dividing instead by net Bitcoin per share, after stripping out roughly $22 billion in senior claims, lifts the same share price to parity.

It is Strategy's latest guidance adjustment during a bear market that began last October. The company's flagship preferred share, STRC, continues to trade below its $100 par value.

Digital Credit Framework

Strategy's "digital credit" framing traces back to a late-June pivot, when the company approved a framework for "active capital management" that, for the first time, authorized selling up to $1.25 billion of Bitcoin to supplement its cash reserve, cover preferred dividends, and fund buybacks — a formal departure from Saylor's long-held "never sell" stance. In the weeks since, the firm has raised cash by selling MSTR stock rather than Bitcoin, preserving its 843,775 BTC holdings while diluting common shareholders.

That makes the company's upcoming disclosures especially relevant for investors trying to compare its Bitcoin reserve, preferred obligations, and common-share dilution under the new framework.

For now, Strategy's own calculations indicate the structure remains sustainable — as long as Bitcoin, currently trading around $64,000 and roughly 50% below its all-time high, does not fall more than approximately 11% per year through the early 2030s.