New structure offers common shareholders enhanced transparency regarding net bitcoin exposure after accounting for preferred stock and convertible debt obligations
By James Van Straten|Edited by Cheyenne Ligon Jul 24, 2026, 1:15 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Strategy Executive Chairman Michael Saylor (CoinDesk Television)SummaryShow- Strategy’s net reserve totals $36.6 billion after accounting for $6.8 billion of out-of-the-money convertible debt and $15.5 billion of preferred stock against its bitcoin and cash reserves.
- The updated mNAV establishes a permanent equity issuance threshold of 1.0x, while a 3.22% BTC breakeven ARR will enable bitcoin gains to cover interest and preferred dividend payments indefinitely.
Strategy (MSTR), recognized as the largest corporate bitcoin holder, has implemented a new metrics framework that substitutes gross BTC figures with net values, factoring in the company's increasing obligations from preferred stock and convertible debt. This initiative aims to provide common equity holders with a clearer understanding of the company's financial standing.
This metric adjustment reflects a consistent effort by Strategy to refine its reporting over the past year, as it navigates through a prolonged bear market that commenced in October. The company's preferred stock, STRC, is currently trading around $85, having not reached its intended $100 par value since mid-May.
At present, bitcoin is trading at approximately $65,000, which is 50% lower than its peak value, while MSTR is trading 84% below its high in November 2024.
The newly introduced metric, termed "Net Reserve," is currently valued at $36.6 billion. This figure considers Strategy's $55.6 billion bitcoin reserve (843,775 BTC), adds $3.2 billion in USD reserves, and subtracts $6.8 billion in out-of-the-money convertible debt along with $15.5 billion in notional preferred stock, which represents $22.3 billion in senior claims that take precedence over common shareholders in liquidation scenarios.
Additionally, the company has modified its multiple to net asset value (mNAV) calculation. Previously, the accretion threshold typically kept mNAV above 1.0x, complicating the assessment of whether new share issuance was advantageous for existing shareholders. The new calculation permanently fixes this threshold at 1.0x — if MSTR trades above this level, issuing new shares increases BTC per share for all investors.
The formula provided by the company is: MSTR Price, divided by Net Bitcoin Per Share, which indicates whether MSTR is trading above or below Net Bitcoin Per Share after accounting for debt and preferred claims.
The BTC Floor ARR denotes the minimum sustainable BTC growth rate throughout the credit structure's duration, beyond which restructuring considerations become necessary for the company. Currently, the BTC Breakeven ARR is set at 3.22%, meaning bitcoin must appreciate at a rate surpassing this annually for Strategy to cover all interest and dividend obligations solely through BTC gains indefinitely.
Strategy has also introduced additional bitcoin market metrics, including the premium to the 200-week moving average and the Fear and Greed Index.
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Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk ResearchJul 22, 2026Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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