Saylor and team overhaul Strategy's bitcoin metrics as bear market persists
CoinDesk 2026-07-24 13:15:15
Context: Strategy, the largest corporate holder of bitcoin, has revamped its market metrics framework to provide a more transparent view of its financial position, amid a persistent bear market that began in October. The company's executive chairman, Michael Saylor, introduced new metrics, including the "Net Reserve" and a revised multiple to net asset value (mNAV) formula. This overhaul aims to give common equity holders a clearer understanding of the company's situation.
Key Facts
- Strategy's Net Reserve stands at $36.6 billion, calculated by subtracting $6.8 billion of out-of-the-money convertible debt and $15.5 billion of preferred stock from its $55.6 billion BTC reserve and $3.2 billion in USD reserves.
- The company's revised mNAV formula permanently sets the equity issuance threshold at 1.0x, allowing for a clearer assessment of whether new share issuance benefits existing holders.
- The BTC Breakeven ARR, which represents the minimum sustained BTC growth rate required to fund interest and dividend obligations, is currently at 3.22%, indicating that bitcoin needs to appreciate by at least this rate annually for Strategy to cover its obligations through BTC gains alone.
- Strategy's flagship preferred stock, STRC, trades near $85, still below its intended $100 par value since mid-May, while bitcoin is currently trading at approximately $65,000, 50% below its all-time high.