Strategy Introduces Net Asset Basis for Bitcoin and mNAV Reform

Strategy has introduced a new 'Net Asset' basis to recalculate the value of its Bitcoin (BTC) holdings. The previous total BTC-based metric has been discarded, and a 'Net Reserve' framework reflecting the debt structure has been unveiled. The current net asset size is estimated to be approximately $36.6 billion. This figure is derived from the company's holdings of 843,775 Bitcoins, total assets of $55.6 billion, and $3.2 billion in cash, minus a total of $22.3 billion in senior claims, including $6.8 billion in convertible bonds and $15.5 billion in preferred stock. Additionally, the calculation method for the market-to-net asset ratio, known as 'mNAV', has been revised, with the baseline fixed at '1.0x'. New share issuance will only benefit existing shareholders if the stock price exceeds the net Bitcoin value by more than 1x. Currently, the Bitcoin breakeven growth rate stands at 3.22%, and if it rises above this level, interest and dividends can be covered by Bitcoin appreciation gains. This metric reform is a continuation of the bearish market response that began last October, and Strategy has continuously adjusted its financial guidance. The current STRC stock price is around $85, while Bitcoin is approximately $60,000, reflecting a 50% decline from its all-time high. The company has also begun to incorporate new Bitcoin market indicators.

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