Summary

  • Strategy has introduced new investor metrics, indicating that the transition from convertible debt to preferred-equity "digital credit" necessitates updated benchmarks.
  • The key metric, "net Bitcoin per share," calculates the Bitcoin available for common shareholders after accounting for $22.3 billion in debt and preferred stock claims.
  • Additionally, mNAV has been redefined to return to its 1.0x par, and "amplification" is now viewed as approximately a 1.5x equity multiplier.

Strategy has revised its metrics for valuing Bitcoin, launching a series of new "net" measures designed to exclude debt and preferred stock claims, thereby clarifying the amount of Bitcoin that actually belongs to common shareholders.

New and updated market metrics are live at https://t.co/yIv7IimRdf. 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 on its investor site, Chaitanya Jain, the head of investor relations, emphasized the need for metrics to "evolve" as the company shifted from convertible debt to focusing on digital credit, responding to investor requests for more transparency. Executive chairman Michael Saylor elaborated that, in a tweet, "Bitcoin Capital Markets require a new financial language."

The primary focus is on "net reserve," which amounts to approximately $35 billion. This figure is derived by deducting $22.2 billion in senior claims (including $15.5 billion in preferred stock and around $6.8 billion in out-of-the-money convertible debt) from Strategy's Bitcoin holdings worth $57 billion (843,775 BTC) and $3.2 billion in cash. By dividing this remaining amount by a new fully diluted share count, the "net Bitcoin per share" is calculated, showing an increase from $13 (44,000 sats) at the end of 2020 to $95 (143,000 sats)—a 43% compound annual growth rate compared to Bitcoin's 16% growth rate.

The company has also redefined mNAV to be MSTR's share price divided by net Bitcoin per share, adjusting the accretion threshold to 1.0x, and has reinterpreted "amplification" as an equity multiplier of about 1.5x, based on Bitcoin reserves over net reserves. New credit metrics have been established to assess the sustainability of the debt-driven model, highlighting a "hurdle rate" of approximately 10.8% as Strategy's effective cost of credit, a break-even rate close to 3.2%, and a "flow rate" of about −11%, indicating the potential decline in Bitcoin's value before reserves would cease to cover debt and dividends.

This overhaul comes as MSTR faces challenges, with its stock trading around $93 on Friday, slightly down from the previous day and significantly below its peak in 2024, just ahead of the second-quarter earnings report on July 30. Under the new calculation, mNAV stands at 1.02x. When measured by the previous method—using gross Bitcoin per share—the stock appeared to be trading at a discount; however, when calculated using net Bitcoin per share, after removing the approximately $22 billion of senior claims, it brings the share price back to parity. This adjustment is part of Strategy's ongoing guidance updates during a bear market that started last October; its preferred share, STRC, continues to trade below its $100 par value.

The concept of "digital credit" was introduced following a strategic shift in late June, when Strategy approved a framework for "active capital management," which now allows the sale of up to $1.25 billion of Bitcoin to replenish cash reserves, pay preferred dividends, and finance buybacks—a notable departure from Michael Saylor's previous "never sell" policy. In the weeks that followed, the company has raised funds by selling MSTR stock instead of Bitcoin, preserving its 843,775 BTC holdings while diluting common stockholders.