The first indicator is the new “net reserve”, which currently stands at $36.6 billion. This figure takes into account 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 preference, the $22.3 billion in senior debt that precedes common shareholders in any liquidation scenario.
The company also updated its multiple to net asset value (mNAV) formula. Under the old accounting method, the recapitalization threshold generally kept the company’s NAV above 1.0x, making it increasingly difficult to know whether issuing new shares was actually beneficial to existing holders. The new formula permanently sets this threshold at 1.0x – if MSTR trades above it, issuing new shares adds BTC per share for all investors.
According to the company, the formula is: MSTR price, divided by Bitcoin net per share, representing whether MSTR is trading above or below Bitcoin net per share after debt and preferred claims.
The BTC Floor ARR is the minimum sustained growth rate of BTC over the life 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 this rate annually for the strategy to fund all interest and dividend obligations through BTC earnings alone, in perpetuity.
Strategy also introduced new Bitcoin market metrics, such as premium to 200-week moving average and Fear and Greed Index.
